Filipino consumers can gain partial financial relief in their budgets this week, as the price of diesel will be trimmed by P0.60 per liter; and kerosene products will be on downtrend by P0.75 per liter.
Additionally, the price of cooking fuel liquefied petroleum gas (LPG) will be on rollback by P1.70 to P2.05 per kilogram (kg) -- or an equivalent of P18.70 to P22.55 for the standard 11-kilogram cylinder typically used by households for cooking.
Conversely, the price of gasoline products will be on upswing of P0.75 per liter given the higher demand for this commodity especially within the Asian region.
As of press time, the oil companies that already advised on their price adjustments effective Tuesday (August 2) had been Pilipinas Shell Petroleum Corporation, Cleanfuel, PetroGazz, Seaoil, PTT Philippines, Eastern Petroleum and Chevron; while their industry-competitors are anticipated to follow.
In the LPG price adjustments, the EC Gas brand of Eastern Petroleum had been slashed by P1.70 per kg; while industry leader Petron Corporation enforced a heftier price cut of P2.05 per kilogram.
Petron similarly advised that it will be reducing the cost of its autoLPG, an alternative fuel used by the transport sector, by P1.15 per liter effective August 1 (Monday).
The prices of LPG products are adjusted once every month and it is typically implemented on the first day of each month – and the cost movements are reckoned on the swing of international contract prices which is benchmarked with that of Saudi Aramco, the biggest world oil producer.
Prior to this month’s round of adjustments, the pick-up price of LPG products in Metro Manila retail outlets had been hovering at P836.04 to P1,022.60 for the standard 11-kilogram tank, as shown in the monitoring report of the Department of Energy.
Pricing pressure at the domestic pumps had been eased for the last five weeks, but market watchers cannot give prognosis yet at this point if there would still be downward trajectory in prices in the weeks ahead.
Last Friday (July 29), international benchmark Brent crude climbed back to the level of $110 per barrel; but market sentiments suddenly changed again on Monday as prices settled back to $103 per barrel for Brent crude; while Dubai crude had been roughly steady at $102 per barrel.
The major factors that have been continuously perturbing market fundamentals include the lingering fears of global economic recession, the protracted Russia-Ukraine war; and the niggling concern of tight oil supply globally. ###