THE Department of Energy (DOE) expects mixed movements in the prices of petroleum products next week with gasoline posting an increase of as much as P0.70 per liter while diesel and kerosene are expected have a price rollback.
Meanwhile, Petron Corp. announced a P0.70 per kilo increase in liquefied petroleum gas effective 12:01 a.m. today to reflect the higher international contract price of LPG for the month of February.
DOE Oil Industry Management Bureau (OIMB) director Rodela Romero said the forecast was based on a four-day trading in the Mean of Platts Singapore (MOPS), the benchmark pricing for oil importers, in which two days were holidays.
“We expect a mixed movement in the prices of petroleum products by next week. Estimated adjustments are as follows: gasoline – increase of P0.40 to P0.70 per liter, diesel decrease of P1.30 to P1.60 per liter and kerosene -decrease of P0.85 to P1 per liter,” Romero said.
Romero said the mixed price movement can be attributed to United States President Donald Trump’s call for lower oil prices and higher output in the US and other major suppliers including the Organization of the Petroleum Exporting Countries (OPEC), build-up of US inventory; and uncertainty over potential US tariffs on Canada and Mexico.
“But the OPEC+ Joint Ministerial Monitoring Committee that oversees the group’s crude production agreement will meet on Feb. 3 to look into the oil market situation again,” Romero said.
Jetti Petroleum president Leo Bellas estimated a rollback in diesel price by P1.10 to P1.30 per liter and increase in gasoline prices by P0.50 to P0.70 per liter. The company does not sell kerosene.
Bellas said the primary drivers of the mixed price movement included worries that the tariffs proposed by US President Trump could further pressure economic growth and energy demand, higher diesel export volumes from India and China weighed on prices and seasonal boost in demand over the peak Lunar New Year travel supported the gasoline price benchmarks.
Last Jan. 28, the oil companies implemented a rollback of P0.80 per liter for gasoline, P0.20 for diesel and P0.50 for kerosene.
The DOE said gasoline has a total net increase of P2.65 per liter, diesel of P4.80 per liter and kerosene of P3.80 per liter to date.