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Saturday, April 13, 2024

Mixed movement for fuel prices seen; Firms hiking LPG cost by P0.30 per kg

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Consumers can expect mixed price movements for fuel prices next week, with gasoline prices increasing while diesel and kerosene prices go down.

Industry sources said gasoline prices may go up by P0.20 to P0.45 per liter while diesel and kerosene will have rollbacks of P0.30 to P0.60 per liter and P0.30 to P0.50 per liter, respectively.

This developed as local oil firms increased the price of liquefied petroleum gas by as much as P0.30 per kilogram to reflect the higher contract price of LPG in the world oil market.

Petron Corp. and Solane LPG announced price hikes of P0.30 and P0.27 per kilo for LPG, respectively, starting March 1.

This is equivalent to an additional P2.97 to P3.30 for an 11-kg LPG tank.

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“Petron will implement a P0.30 per kilogram (VAT-inclusive) increase in LPG prices effective 1200H March 1. This reflects the international contract price of LPG for the month of March,” the company said.

Meanwhile, Department of Energy director for the oil industry management bureau Rodela Romero said several factors can be attributed to the mixed price movement next week.

She said the price rollbacks were due to an inventory increase of US crude stocks, the signal of a possible Gaza ceasefire against the reality on the ground, and the postponed reduction in the interest rates that is expected to restrain global demand.

“The increase is due to the potential extension of OPEC+ (Organization of the Petroleum Exporting Countries) supply cut from the first quarter of 2024 to second quarter of 2024,” Romero said.

She said specific to gasoline is the Russian imposition of a six-month export ban starting March 1.

Romero said the domestic pump price estimates might change based on the result of the Friday trading.

On Feb. 27, the oil companies implemented a per liter decrease in the price of gasoline, diesel, and kerosene by P0.70, P0.95 and P1.10, respectively.

Year-to-date adjustment of gasoline, diesel and kerosene stands at a net increase of P5.45 per liter, P4.45 per liter and P0.40 per liter, respectively.

Prevailing retail prices of gasoline for the National Capital Region ranges from P56.30 to P81.25 per liter, diesel from P54 to P83.61 and kerosene from P72.44 to P83.83 per liter.

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