By Myrna Velasco
Domestic pump prices will be up for another round of rollback this week at P0.45 per liter for diesel, and P0.35 per liter for gasoline products, according to the announcement of the oil companies.
Price reduction for kerosene products will be at P0.60 per liter, based also on the latest pricing advisory of the industry players.
As of this writing, the oil companies that already cut pump prices included Seaoil Philippines, Phoenix Petroleum, Pilipinas Shell Petroleum Corporation and PetroGazz; while the rest of the industry players are expected to follow.
Beyond these petroleum commodities, the Department of Energy (DOE) is anticipating that the price of cooking fuel liquefied petroleum gas (LPG) will also go down this June although it was still assessing the scale of cost reduction.
The benchmark applied on LPG cost movements hinges on the Saudi Aramco contract prices, which is also generally applied as reference for Asian LPG markets. Domestically, LPG prices move on a monthly basis.
Prices in the world market softened in the latter part of trading days last week, and that warranted the bigger-than-anticipated price rollbacks in oil products this week.
Dubai crude, which is the pricing reference for Asian refiners, reverted to the US$69 per barrel level after it climbed to more than US$71 per barrel last month.
It was generally a seesaw in prices that Filipino consumers had experienced this month – with series of rollbacks in the initial weeks; then hefty price increases last week prior to this new batch of downward swing in prices.
Across markets globally, industry watchers and analysts are all keeping a close watch on the portended impact of the lingering US-China trade war and the outcome of the “Vienna alliance” meeting between the Organization of the Petroleum Exporting Countries (OPEC) and the Russian-led league of oil producers.
For the Philippines, it is not just the weekly global cost movements that are keenly being monitored but also the fluctuation of the Philippine peso’s value versus the greenback because the latter also affects pump price adjustments in a major way.