It will be a mixed bag of adjustments at petroleum pumps next week as gasoline prices will be on rollback; but there will be uptrend in diesel and kerosene prices.
Based on the initial calculation of the oil companies, gasoline prices will be reduced by P0.15 to P0.25 per liter; while diesel will be higher by P0.10 to P0.20 per liter.
For kerosene, the estimated increase had been pegged at P0.30 to P0.40 per liter, according to the industry players.
Cost movements at the pumps are anticipated on Tuesday (November 10), being the established routine of the downstream oil sector. Price swings are generally anchored on the Mean of Platts Singapore (MOPS), the pricing reference embraced by the finished product importers.
From last week’s adjustments, the monitoring of the Department of Energy (DOE) showed that overall pump price adjustments in the Philippines this year were still on net decrease of P5.47 per liter for gasoline; P11.11 per liter for diesel; and P14.29 per liter for kerosene.
The appreciating value of the Philippine peso versus the US dollar has also been helping soften oil prices in the domestic market, as that serves as the other determinant for cost movement at the pumps.
The DOE monitoring report further noted that there had been mixed outcome for the Asian market due to “continued regional low demand signals, with uncertainty over the Covid-19 situation impacting the demand outlook.”
On a global scale, it was stipulated that the alliance of the Organization of the Petroleum Exporting Countries (OPEC) and the other producers led by Russia will continue to adhere to their agreed production cut of 7.7 million barrels per day until the end of the year.
However, that output trim is seen narrowing by January next year until 2022, on forecasts that demand may already rise as the global economy will be on the mend from the menace of the coronavirus pandemic.
As a heavily importing country for its fuel requirements, the Philippines has always been vulnerable to the boom-and-bust cycle of oil supply-demand as well as price flutters in the world market.