Some industry players are foreseeing price cuts for diesel and gasoline products at the range of P2.50 to P3.50 per liter due to the noteworthy downtrend in global oil prices. But most of the oil companies hinted a rollback of P2.50 per liter for both diesel and gasoline products.
As of posting oil firm PetroGazz already began cutting its prices for diesel and gasoline by P2.00 per liter on Friday (June 7), ahead of next week’s big-time price reductions.
This is the biggest price rollback for the year that the oil companies to implement so far – following another sizeable reduction seen at the pumps just last week. The oil companies are likely to adjust their prices until Tuesday (June 11) next week.
Prior to the anticipated hefty rollbacks, fuel prices in Metro Manila as checked by the Department of Energy (DOE) have been ranging from P45.90 to P60.26 per liter for gasoline; P40.05 to P48.34 per liter; and P44.85 to P54.65 per liter for kerosene.
Dubai crude which is the benchmark for Asian oil refiners had plunged to the level of US$59 per barrel – establishing some degree of softening compared to last week.
Market analysts and watchers have been ascribing the downtrend in prices to slower economic growths as the key trigger to the weakening demand of oil commodities.
As trade conflicts being instigated by the United States – not only with China now, but also with its neighbor Mexico, the latter of which also has vast major oil production being inserted into world markets.
A monitoring report by the DOE where it was stipulated that “concerns over the trade dispute between the United States and China may lead to an economic slowdown and reduced fuel consumption outweigh supply concerns.”
In this month will also set an interesting play for the Organization of the Petroleum Exporting Countries (OPEC) and its Russia-led alliance of produces on their scheduled meeting to ascertain next moves that they will carry out for the oil markets.
The descent in world oil prices has been benefitting oil import-dependent countries like the Philippines because this translates to lower prices.
It is seen as a favorable development for the Philippines as this year marked another hike in excise taxes of petroleum products, thus, the price rollbacks served as a counterweight.