Pump prices are expected to be rolled back anew next week by as much as P0.40 per liter due to geopolitical uncertainties and lower US crude inventories.
“The combination of the bearish and bullish factors supports the volatility of oil prices in the international oil market for this week. As a result of those relevant news, the 4-day trading in MOPS (Mean of Platts Singapore) is estimated to make an adjustment in the domestic pump prices,” Department of Energy director Rodela Romero said.
MOPS is the pricing benchmark used by the country’s oil importers.
Romero said gasoline prices may have no adjustment or will have a price rollback of P0.20 per liter.
On the other hand, diesel pump prices are expected to go down by P0.20 to P0.40 per liter and kerosene by P0.30 to P0.35 per liter.
“The downward pressure is attributed to the weakening demand from China and the plans of OPEC+ to increase supplies in the world market. On the other hand, crude oil futures extended gains yesterday due to the escalating geopolitical risk from renewed conflict in the Middle East and the lower US crude inventories,” Romero said.
She said oil companies increased the price of liquefied petroleum gas (LPG) products by P0.27 to P0.30 per kilogram for August.
Romero said however that areas declared under a state of calamity will have a 15-day price freeze for 11-kg and below for LPG and kerosene.
On July 30, oil firms cut the price of gasoline by P0.75 per liter, diesel by P0.85 per liter and kerosene by P0.80 per liter due to easing fears of an Iran-Israel escalation after Tehran said it would not seek to retaliate to the Israel’s strike last week and uncertainties in the demand outlook and the continuous increase in the inventory of crude of the US.
Year-to-date, total adjustment of gasoline and diesel stand at a net increase of P9.60 per liter and P6.85 per liter, respectively.
On the other hand, kerosene has a total net decrease of P0.30 per liter.
