Oil prices will likely roll back by as much as P1.50 per liter next week to reflect the movement of prices in the world oil market following the recent decision of the Organization of the Petroleum Exporting Countries and its allies to extend the production cut.
“Oil prices remain under pressure this week despite OPEC+ agreeing to extend their voluntary production cuts of 2.2 million barrels per day (MMBD) till the end of this year. This decision comes in response to growing concerns over weakening demand growth, high interest rates, and increased production from the US,” Department of Energy (DOE) director for the oil industry management bureau Rodela Romero said.
Romero said the estimated rollback in the domestic pump prices is P0.70 to P0.90 per liter for gasoline and P1.20 to P1.50 per liter for diesel and kerosene.
The oil price forecast is based on the four-day trading of the Mean of Platts Singapore (MOPS), the pricing benchmark used by oil importers. The forecast may still change based on Friday’s trading movement.
On June 4, the oil companies implemented a mixed adjustment on the price of petroleum products.
The oil firms rolled back the price of gasoline by P0.90 per liter but increased the price of diesel and kerosene by P0.60 per liter and P0.80 per liter, respectively.
Year-to-date total adjustment of gasoline and diesel stands at a net increase of P6.65 per liter and P5.45 per liter, respectively. Kerosene, on the other hand, has a net decrease of P0.25 per liter.
Prevailing retail prices of petroleum products in the National Capital Region for May 14 to May 20 range from P55.50 to P85.72 per liter for gasoline, P51.49 to P80 per liter for diesel, and P70.96 to P83.01 per liter for kerosene.
