Gasoline prices on rollback, diesel up next week

Published October 17, 2020, 12:19 PM

by Myrna M. Velasco

It will be another week of mixed bag adjustments at petroleum pumps next week as gasoline prices will be on rollback by P0.30 to P0.45 per liter; while diesel prices will go up by P0.20 to P0.30 per liter.

MB file photo. (Mark Balmores)

Kerosene, which is the other commodity in the triumvirate of the mostly-used fuels by Filipinos, will also increase by P0.15 to P0.25 per liter.

The price adjustments of the oil companies shall be anticipated on Tuesday (October 20), and these would be anchored generally on the movement of prices based on the Mean of Platts Singapore (MOPS).

In the global market, crude prices had been roughly steady – with benchmark Brent crude hovering at $42 per barrel in last week’s trading; while Dubai crude, which is pricing reference for Asian refiners, had been at the level of $41 per barrel.

On recent assessment of JP Morgan, the global demand outlook for oil remains ominous because of the potential rise of coronavirus infections in many parts of the world that are now gripped by the approaching winter season.

Second wave of Covid-19 affliction is already glaring in many parts of Europe, and this is seen to slow down the recovery pace of the oil sector because these recent developments may entail new round of movement restrictions.

Given such forecast, experts noted that this may prompt the Organization of the Petroleum Exporting Countries to backpedal on earlier plans of easing oil production next year.

The expectation is for Saudi Arabia potentially leading ‘deeper cuts’ in output, and this will come as a reverse of the quota increase first agreed upon by OPEC and its ally-producers.