Diesel to rise over P1.00/litre next week – Manila Bulletin
Price adjustments at oil pumps next week will continue for diesel and kerosene, but could be mixed adjustments for gasoline, according to the calculation of oil companies.
Industry players have estimated that diesel prices will rise by P1.05 to P1.20 per liter while kerosene will rise by P0.10 to P0.20 per liter due to the combined impact fluctuations in international prices as well as the fall in the value of the Philippine Peso against the US dollar,
For petrol prices, the oil companies initially calculated a reduction from P0.05 to P0.10 per litre, but if additional charges are added, the resulting price will either be increased or there will be no reduction. price movement by Tuesday, June 28.
The domestic market closely followed the evolution of international oil prices during last week’s exchanges, as well as the fluctuation of the exchange rate; where the peso hovered just a little between P55 and the greenback.
Based on Department of Energy (DOE) monitoring, the local currency had devalued on average P1.04 last week to P54.41 from P53.36 the previous week.
Ahead of the next round of adjustments, the DOE’s monitoring report showed year-to-date price movements still resulted in net increases of 44.25 pula per liter of diesel; P39.65 per liter for kerosene; and 29.50 pula per liter for gasoline.
On the regional market, gasoline prices fell by $3.11 a barrel; diesel $0.69 a barrel; and kerosene from $3.09 a barrel; but the forex devaluation had swallowed up what might have been expected as a pullback in domestic pump prices next week.
Globally, benchmark Brent was nearly flat last week at $112 a barrel; but experts predict continued turmoil in oil markets, so there is no certainty that the downward price trend will continue in the coming weeks.
The Marcos administration has yet to name the next energy secretary, but one of the key policies being pushed so early includes the separation of fuel costs or the separation of cost elements passed on to conjure up price transparency for paying consumers.
There are also proposals to revive the Petroleum Price Stabilization Fund (OPSF) to cushion radical price spikes; as well as the establishment of a Strategic Petroleum Reserve (SPR) that the country can draw on for supplies in the event of “extraordinary events” in the oil markets.
SUBSCRIBE TO THE DAILY NEWSLETTER
CLICK HERE TO JOIN