Filipino consumers can finally heave a sigh of relief as petroleum prices will be tracking significant downtrend next week, with the rollback for gasoline prices projected at hefty P1.15 to P1.25 per liter, based on calculations by oil companies.
Industry players similarly estimated that the price cuts for diesel will be at P0.60 to P0.70 per liter, while kerosene prices will be reduced by P0.65 to P0.75 per liter.
The price rollbacks will be implemented on Tuesday, Nov. 9, in keeping with the weekly price movements being acceded to in the deregulated downstream oil sector – and it will be anchored on the Mean of Platts Singapore (MOPS) index.
The reduction in pump prices is a most awaited development by motorists who are already suffering from financial pinch following more than two months of unbroken string of price hikes.
It could be gleaned that the trading outcome of oil commodities significantly softened to a four-week low in recent days -- with international benchmark Brent crude dropping to $82 per barrel after flirting at multi-year high $87 per barrel last month; while Dubai crude, which is the pricing reference for Asian markets, dipped to US$78 per barrel.
According to global experts, oil markets have eased following the pronouncement of US President Joe Biden that the biggest oil consumer of the world would be tapping into its Strategic Petroleum Reserve (SPR) if only to abate the relentless rally in prices at the pumps.
That American policy pronouncement was set forth because of the reluctance of the Organization of the Petroleum Exporting Countries and its ally-producers (or collectively known as OPEC+) to ramp up production despite continued escalation of global oil demand.
In the Philippines, the scene has also been troubling, especially in the nine weeks of price hikes that had triggered spiraling effect on the prices of basic commodities, as well as in key services like in public transport.
The economic pain being experienced by the drivers of public utility jeepneys, in particular, had prompted government to release P1.0 billion worth of fuel subsidy that could be funneled to the agonizing transport sector.
The Philippines is heavily leaning on imports for its petroleum-product requirements, hence, it is also highly vulnerable to the extreme swing of prices in the world market. ###