Diesel prices may go up by P0.20 per liter but gasoline prices are not expected to move this week, an oil distributor said over the weekend.
“Expect fuel prices to have mix movements next week [July 28-Aug. 3]. Diesel should increase by P0.20 per liter but gasoline should have no price movement,” Unioil Philippines said in an advisory.
World oil prices settled lower last week after uncertainty in US demand due to a weak jobs report, according to S&P Global Platts.
Global oil price sentiments have been mixed in recent weeks as countries try to cope with the impact of the coronavirus pandemic.
The Energy department cited a report by the Bank of America Merrill Lynch, which described global oil demand as “on the mend,” but the recovery differs between developed markets and emerging markets.
Analysts also have differing opinions on the effects of the production cuts of the Organization of Petroleum Exporting Countries. Some analysts believe those may not result in an immediate rise in crude and oil prices due to the fragility of the global economic recovery, while other analysts are more optimistic.
A recent report by Reuters quoted International Energy Agency Executive Director Fatih Birol as saying the global oil markets are rebalancing, and projecting crude prices in the coming months to stay at $40 per barrel.
Here in the Philippines, the oil firms cut the price of gasoline by P0.10 to P0.20 per liter but raised the price of kerosene by P0.15 per liter on July 21. There were no movements on diesel prices.
The total year-to-date adjustments on oil prices now stand at a net decrease of P5.07 per liter of gasoline and P12.84 per liter of kerosene. Diesel remained at a net decrease of P8.54 per liter.
