The country’s oil firms implemented a mixed oil price movement effective 6 a.m. today (Tuesday), with a rollback of P1.25 per liter for diesel – slightly lower than last week’s forecast of a P1.40 per liter reduction.
Pump prices of gasoline went up by P0.45 per liter while kerosene went down by P1.20 per liter.
“Flying V will implement price movement for the following products on October 31, 2023, Tuesday at 6:00 AM: Biodiesel: P1.25 per liter rollback, gasoline: P0.45 per liter increase, and kerosene: P1.20 per liter rollback,” the company said in its advisory.
Seaoil Philippines, Jetti Petroleum, PTT Philippines, and Cleanfuel also issued separate advisories while other oil firms are expected to follow.
Department of Energy director for the oil industry management bureau Rodela Romero attributed the latest oil price movement to the weakening of crude prices despite the ongoing geopolitical tensions in the Middle East.
She said other factors include the strengthening of the US dollar, which had a negative impact on oil prices.
“Oil is typically priced in US dollars, so when the dollar rises, it can make oil more expensive for buyers in other currencies, leading to lower demand and lower prices,” Romero said.
These price adjustments resulted in a year-to-date net increase of P14.20 per liter for gasoline, P10.45 per liter for diesel, and P5.04 per liter for kerosene.
According to a DOE report, total petroleum demand increased by 3.4 percent to 13,595 million liters (ML) in the first half from 13,154 ML in the same period in 2022 as economic activities normalized.
The country imported all of its crude oil requirements from the Middle East during the period, of which 50.2 percent came from Saudi Arabia, 26.92 percent from the United Arab Emirates, and 22.91 percent from Iraq as of June.
Petroleum product imports, used by independent oil companies, slightly dropped by 0.1 percent to 10,281 ML from 10,291 ML last year.
On a per-product basis, the importation of aviation fuel significantly increased by 42.6 percent due to the lifting of travel restrictions.