Consumers will have to brace for mixed adjustments on pump prices next week, with diesel prices seen rising by P0.35 to P0.45 per liter; while gasoline will be on rollback of P0.10 to P0.20 per liter.
Kerosene, which is another commodity utilized in some Filipino households and also for key industries, will have heftier increase estimated at a range of P0.55 to P0.65 per liter.
The oil firms have calculated the forthcoming price movements as anchored on the Mean of Platts Singapore (MOPS); and such will be reflected in their cost adjustments on Tuesday (October 13).
While the weekly price swings carry on as a routine for the oil companies, debates are being revived on the policy insistence of the Department of Energy (DOE) to have fuel prices unbundled so this could engender transparency in the deregulated oil market.
Nevertheless, that target of the energy department is being shackled by series of legal cases filed against its Circular that was issued last year.
To remedy that policy snag, the DOE is now turning to Congress to have the Oil Deregulation Law amended and have the fuel cost unbundling integrated in the modifications of provisions.
In the oil industry’s international realm, a DOE monitoring report stated that while Asia’s oil demand will take a hit from the coronavirus pandemic, it is this region that “will lead global recovery in 2021 as it is expected to bounce back, driven by China and India.”
The report further noted that “sentiment in the Asian gasoline market is bullish, with industry participants attributing additional support from expectations of more cuts to regional refining output against a backdrop of steady demand.”
Globally, the Organization of the Petroleum Exporting Countries (OPEC) is still nudging ally-producers to strictly comply with their committed output cuts as part of the market rebalancing strategy set off for the industry.
Just recently, Saudi Energy Minister Prince Abdulaziz bin Salman secured the commitments of the laggards in the output cutback deal “to make good on their pledged crude production cuts by the end of December.”