Pump prices on moderate rollback next week

Published March 6, 2021, 1:49 PM

by Myrna M. Velasco

Consumers’ pockets will finally experience slight relief as prices at petroleum pumps are anticipated to be on moderate rollback next week.

Oil companies have calculated prospective price reduction of P0.40 to P0.45 per liter for diesel products; and marginal downward adjustment of P0.10 to P0.20 per liter for gasoline products.

MB file photo. (Mark Balmores)

Kerosene, the other commodity in the triumvirate with weekly price swings, will have estimated rollback of P0.45 to P0.55 per liter.

Oil industry players are expected to implement the price cuts on Tuesday (March 9), in keeping with their cost adjustment routines anchored on the Mean of Platts Singapore (MOPS), a pricing benchmark in the regional market.

Next week’s price downtrend is a breather from the series of hefty price hikes that inflicted anguish on consumers, while they also wade through rising prices of food commodities.

Nevertheless, global oil market experts warned that the price declines next week may only be temporary as international benchmark Brent crude already trifled within US$69 per barrel level as of Friday (March 5) trading, more than US$3.0 per barrel rise from outcomes in previous trading days.

In fact, the forecast is for global prices to already reach a record-high of US$70 per barrel next week, a cost level even higher before last year’s strike of the coronavirus pandemic.

The fresh round of rally in international prices had been mainly attributed to the decision of the Organization of the Petroleum Exporting Countries and its ally-producers “to keep production levels unchanged” – based on the result of their meeting on Friday (March 5).

Prior to the next round of price adjustments, a report of the Department of Energy (DOE) showed that year-to-date prices already incurred net increase of P5.20 per liter for gasoline; P4.85 per liter for diesel; and P4.35 per liter for kerosene.

Filipino consumers were already on din of protests following last month’s incessant price hikes, hence, next week’s rollback may just come as a “calm before the storm” relative to the anticipated next round of price hikes.