Filipino motorists can enjoy another week of less worry on their fuel expenses as oil companies implement their cost rollback at the pumps on Tuesday, July 26.
In the cost adjustment advisories, oil companies announced that the price of diesel will be reduced by P1.85 per liter; while gasoline prices will be down by a relatively marginal P0.40 per liter.
For kerosene, which is a vital commodity for key industries like aviation, the price reduction to be reflected this week will be at a scale of P1.30 per liter.
As of this writing, the industry players that already advised on their price cuts include Pilipinas Shell Petroleum Corporation, Cleanfuel, Seaoil and PetroGazz. Their competitor-firms are expected to match the pricing leads.
Despite the series of price downtrends in the past three weeks, however, global experts have been sounding off that the industry’s doom is still far from over; hence, a reverse course of price spikes could still be expected in the weeks and months ahead.
Despite the series of cost cutbacks, oil price adjustments since the start of the year still accrued to net increases of P32.95 per liter for diesel; P18.90 per liter for gasoline; and P28.05 per liter for kerosene products.
Global experts have been focusing the lens of their market analysis on the possible impact of economic recession that could potentially trigger contraction in demand, although they are very cautious on predictions on whether or not oil will already plunge below $100 per barrel.
As of Monday (July 25) trading, international benchmark Brent crude held on at $102 per barrel; while Dubai crude was almost at the same level at $102.50 per barrel.
The new Marcos administration has yet to flesh out its energy policies – not just its action plans on the volatile world oil prices, but also those on the targeted revival of petroleum exploration investments so the country’s energy security agenda can be advanced.
Beyond wildly gyrating oil prices, the Philippines will likewise need to deal with added worry of the falling value of its currency versus the US dollar – because it is the latter that’s being used in its oil purchases to meet domestic energy needs.