Gasoline prices up by P3.95/liter; diesel on rollback by P2.30/liter

Published May 23, 2022, 2:04 PM

by Myrna M. Velasco

Motorists filling up their vehicles with gasoline products will need to spend more on their fuel budgets this week, as the price of this commodity will rise by P3.95 per liter, as announced by oil companies,

Conversely, the industry players had sent price adjustment advisories that diesel will be on rollback by P2.30 per liter while kerosene prices will be reduced by P2.45 per liter.

As of this writing, the oil firms that already advised on their price adjustments effective Tuesday,, May 24, include Pilipinas Shell Petroleum Corporation, Cleanfuel and PetroGazz. The rest of their competitors are anticipated to follow their pricing leads.

In an advisory sent to the Department of Energy (DOE), Pilipinas Shell in particular stated that the increase in gasoline prices “had been affected by increases in ethanol and freight costs.”

This is already the 21st price adjustment for domestic petroleum products this year – majority of which had been price hikes that happened 15 times; while there were just five price rollbacks implemented since the start of the year.

The mixed bag of pump price movements this week had been due to the relentlessly volatile oil prices in the international market – and the domestic price movements had been anchored on the Mean of Platts Singapore (MOPS) which serves as the pricing reference of the Philippine downstream oil industry players.

Apart from radical swings of international oil prices, the other major factor influencing prices at the pumps is the fluctuating value of the Philippine peso versus the US dollar.

Market watchers nevertheless indicated that this week’s cutback in prices of diesel and kerosene products may just be temporary, as global oil prices had been manifesting new wave of rally again – with international benchmark Brent crude rising to $113 per barrel as of Monday (May 23) trading.

One of the key factors which recently influenced the unpredictable price swings of global oil commodities had been the decision of the European Union (EU) to cast an energy plan that will pave its way into discarding Russian fossil fuels into their energy markets by 2027.

But as EU’s exit plan had been cemented, the move of China to buy more oil from Russia at a discounted price for the replenishment of its strategic petroleum reserves exerted downward pressure on world oil prices.

On the part of the United States, for it to help soften global oil prices, it opted to ease sanctions against Venezuela; and it also allowed American energy giant Chevron to resume negotiations for its re-entry into that Latin American country.

For the Philippine oil market, industry players are currently at wait-and-see stance as the incoming administration has yet to name its new Energy Secretary and for it to lay down its energy policies.