It will be a period of relief on the pockets of motorists next week, as diesel prices are anticipated to go down by P0.50 to P0.60 per liter; while gasoline prices could be on a rollback of P0.35 to P0.45 per liter.
Kerosene, another vital fuel commodity used by households and industries, is also anticipated for price cuts ranging from P0.55 to P0.65 per liter.
According to oil industry sources, the price rollbacks next week are based on movements of prices in the regional market as anchored on the Mean of Platts Singapore (MOPS), the price reference being employed by the independent players in pricing their products at retail pumps.
Oil companies are scheduled to implement price adjustments on Tuesday (September 8), in keeping with the cost swing cycle already prevailing in the industry.
Pump prices had been stable in the past few weeks, benefiting Filipino consumers, especially those who just returned to work with the easing of quarantine protocols in the country’s key economic centers – primarily in Metro Manila.
Based on the assessment of global energy experts and industry watchers, oil demand recovery may only be achieved by the end of 2021, except for the commercial aviation sector.
Just recently, Barclays noted the bullish call on gasoline demand recovery; and this supports forecasts for the Brent and WTI (West Texas Intermediate) crude prices reaching the levels of US$53 per barrel and US$50 per barrel, respectively, next year.
Moody’s Investor Service, on the other hand, projected that US gasoline demand may still be on a ‘secular decline’ despite its momentary recovery that was precipitated by higher preference of personal car use as many Americans have been avoiding public transport because of the lingering pandemic.
And based on last week’s monitoring of the Department of Energy, it was emphasized that “sentiment in the Asian gasoil/diesel market remains downbeat, as markets remain stuck in the recent cycle of weak demand and a closed arbitrage to Europe.”
As further noted, there are also signs of “more refiners curtailing run rates in the face of weak margins.”