Oil firms are expected to slash the pump price of diesel by P2.60 to P3.10 per liter on Tuesday, ending three straight weeks of price hikes.
An industry source told GMA News prices of gasoline will also go down by P1.90 to P2.40 per liter to reflect the movement of prices on the global market.
Once implemented tomorrow (Feb. 7), the latest price movements will result in an estimated total net increase this year of P4.80 per liter for gasoline and a net decrease of P0.05 per liter for diesel.
Department of Energy (DOE) director for the Oil Industry Management Bureau Rodela Romero said she expects the price rollback based on the four-day trading in the world oil market.
Romero attributed the price cut to the “ongoing recessionary fears, the threat of further interest rates and the build-up in US inventories of crude, petrol, and distillates.”
Sources said world oil prices were also influenced by reports that Russian exports remained strong and the decision of the Organization of the Petroleum Exporting Countries and its allies not to cut production, contrary to market expectations.
On Friday, the DOE also said it will release an energy storage system (ESS) policy on Feb. 14.
Energy Undersecretary Rowena Guevara said this would take into account an increase in renewable energy, which can be affected by many variables.
For example, she said, for wind energy, if the wind dies down, the output of energy will go down as well, so an energy storage system would compensate for the lack of wind.
These energy storage systems would also help transmission and distribution providers because they need to stabilize their system, she added.