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Friday, March 1, 2024

LPG, diesel price cuts up, gas steady

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Kerosene prices will take the largest cut at P2.30 to P2.60 per liter among fuel price rollbacks slated Tuesday, while diesel prices will likely drop by P2.20 to P2.50, industry sources said over the weekend.

As fears of the recession continue to hound demand for petroleum, kerosene and diesel prices are set for another drop this week, as gasoline prices may stay steady or increase by as much as P0.30 per liter.

This is the second straight week that fuel prices will slide, after weeks of price hikes that totaled as much as P7 per liter overall for gasoline, sources told the Standard.

On Feb. 7, local oil companies implemented a P2.10 per liter price rollback for gasoline, cutting diesel by P3 and kerosene by P2.30.

This resulted in a total net increase this year at P5.10 per liter for gasoline, P0.05 per liter for diesel, and P2.25 per liter for kerosene.

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As early as last Friday, Filipinos received news of some relief from the high prices of fuel and electricity this month.

Government officials said consumers can expect a price rollback for petroleum products of as much as P2 per liter by tomorrow as it reflects the movement of prices in the world oil market.

Rodela Romero, Department of Energy director for the Oil IndustryManagement Bureau, said that based on the four-day trading period, diesel and kerosene will go down by more than P2 per liter, but gasoline by less than P0.10 per liter.

An industry source also told the Standard diesel may go down by P2 toP2.20 per liter, while gasoline is expected to go down by P0.05 per liter or no price change.

Meanwhile, customers of the Manila Electric Company (Meralco) will see lower bills as the power distributor slashed its household electricity rate for February.

In an advisory, Meralco said its overall household rate was cut by P0.0106 per kilowatt-hour (kWh) to P10.8895 per kWh, from January’s P10.9001 per kWh.

The reduction translates to a decrease of P2.12 in the electricity bill of a typical household consuming 200 kWh.

On the oil price rollback, Romero said: “Yes (there’s a rollback) though it’s only for the four-day trading (estimate), so the level of the rollback would still depend on Friday [trading results].”

She said world oil prices declined after the US Energy Information Agency recorded an inventory build of 2.4 million barrels.

Fears of a tighter US monetary policy like further interest rate hikes also affected world prices.

“These reasons outweighed the signs of demand recovery in China,” Romero said.

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