Motorists can feast on another round of lower pump prices this week, as the price of gasoline prices had been reduced by P1.95 per liter; while diesel prices were cut by P1.90 per liter.

For kerosene, which is another essential commodity having weekly price adjustments, its price had been trimmed by P1.65 per liter, as advised by the oil companies.

As of press time, the industry players that already sent notices on their price rollbacks had been Pilipinas Shell Petroleum Corporation, Seaoil, PetroGazz and Chevron effective Tuesday (December 6); while their competitor-firms are all anticipated to match their slashed prices.

This is already the seventh round that price downtrends had been implemented – that was since October 25 when global oil prices started plummeting due to confluence of factors, such as those on Covid restrictions as well as the lingering threat of global economic recession.

There had been at least two price adjustments though when mixed cost movements were enforced - with gasoline prices rising on November 8; while both gasoline and kerosene prices were also increased on November 8; and the rest of the fuel commodities were on rollback.

The oil firms have been adjusting their weekly prices at the pumps based on the swing of the Mean of Platts Singapore (MOPS), which is the pricing reference being applied by the deregulated downstream oil industry.

Global oil prices collapsed last week because of the lingering uncertainty on China’s zero tolerance Covid policy, as well as the decision of the European Union-member countries to cap Russian oil.

Nevertheless, after the series of protests in various provinces in China because of its stifling Covid lockdowns, there are expectations that it will relax that policy soon, hence, that could drive up oil demand in the days ahead.

Another major development monitored by market watchers had been the December 4 meeting of the Organization of the Petroleum Exporting Countries and its ally-producers (OPEC+) in which they decided to keep outputs steady; thus, this is not seen exerting that much upward on global prices moving forward.

At this stage, the biggest geopolitical event that could influence oil market fundamentals would be the lifting of Covid restrictions and the enforcement of wider economic reopening in China.

As of Monday (December 5) trading, the spot price of international benchmark Brent crude slightly inched up to $86 per barrel from $85 per barrel from last end-week trading.