Consumers’ pockets will be slightly off from financial pressure next week as prices are anticipated to be on rollback at petroleum pumps, based on the calculation of the oil companies.
Gauging from the outcome of trading in the international market last week, the price of diesel and kerosene products will likely be reduced by P0.35 to P0.45 per liter, but gasoline prices may not change.
The targeted price cuts on Tuesday (March 23) will serve as another round of breathing space for Filipino consumers, because in the past week, they had to put up with big time price hikes.
According to global experts, oil prices had fallen last week because of renewed fears of slowdown in demand — primarily after the move of several European countries to suspend the administration of AstraZeneca vaccines because of alleged ‘several adverse effects’ on those being inoculated.
The oil market is also being wobbled by the fresh wave of higher Covid-19 infections in various parts of the world, including in the Philippines.
From a high of $69 per barrel for international benchmark Brent crude in the past week, it took a reverse course in recent trading days and retreated to the level of $64 to $65 per barrel.
At the same time, the Dubai crude which is generally taken as pricing reference for Asian markets, had softened to $63 per barrel level from $64 to $65 per barrel in the prior week.
From last week’s adjustments at domestic pumps, the Department of Energy (DOE) estimated that gasoline prices already incurred net increase of P7.35 per liter; diesel had gone up by aggregate P6.25 per liter; and kerosene had been higher by P5.35 per liter.
Another factor affecting Philippine fuel prices is the fluctuation of the peso-US dollar exchange rate, which had also been on seesaw in the past weeks.