The rally on oil prices will be sustained at domestic petroleum pumps next week, primarily for diesel and kerosene products while the adjustment for gasoline prices will be relatively lean, according to the oil firms.
As culled from the calculation of the oil companies, diesel prices will escalate anew by P2.35 to P2.55 per liter. Meantime, gasoline prices will be on marginal increase of P0.30 to P0.50 per liter.
Kerosene, which is a critical base for aviation fuel of the airlines and it is also a vital commodity to other industries, will likewise climb by P1.60 to P1.80 per liter.
The industry players will enforce the new round of price hikes on Tuesday, June 21. This will be referenced on the swing of prices based on the Mean of Platts Singapore (MOPS) plus the impact of the falling value of the Philippine currency versus the US dollar.
Prior to the new wave of price upswings next week, adjustments since the start of the year already hovered at P28.70 per liter for gasoline; P41.15 per liter for diesel; and P37.95 per liter for kerosene products.
Last week’s trading in the global markets generally manifested seesaw in prices but by end-week trading on Friday, there was deceleration in oil prices to as low as $113 per barrel for international benchmark Brent crude. This was roughly $9.00 per barrel tumble from week ago’s record high of $122 per barrel. July deliveries had been pegged at $114 per barrel as of June 17 trading.
At this stage, one key factor being monitored by the oil firms -- because of the price pressure it can inflict toward oil products - is the foreign exchange rate, as the US dollar already closed at P53.75 last Friday.
They noted that apart from MOPS-based traded prices, the weekly average in the fluctuation of the foreign exchange rate will also be affecting weekly cost adjustments at petroleum pumps.
Among the geopolitical events influencing prices in the world market last week had been the declining production of the member-countries of the Organization of the Petroleum Exporting Countries (OPEC) and the cap on oil exports being pursued by the United States; while providing the counterweight had been the downturn in the refinery outputs of China.
In the Philippine market, the tone of remedial measures being pushed still lean on pleas to suspend excise taxes for petroleum products, so consumers can immediately benefit from price cuts.
Proposals are also lodged for a third round of financial assistance to the drivers of public utility vehicles (PUVs) and this is a matter that the next administration will tackle as a priority policy enforcement.