Motorists filling up their vehicles with diesel fuel, including the public transport sector, will realize gains at the pumps next week as the price of this commodity will be on heftier rollback of P2.50 to P2.80 per liter.

But the estimated price reduction for gasoline products will be leaner at P0.45 to P0.75 per liter, while kerosene prices will also be pared by a significant P2.35 to P2.65 per liter.

Oil companies will implement the price cuts on Tuesday (January 10), as anchored on the outcome of trading indexed on the Mean of Platts Singapore (MOPS), the regional pricing reference being employed by the deregulated Philippine downstream oil industry.

The downswing of prices had been mainly attributed to the drastic collapse of prices in the world market as of last week’s trading – with the international benchmark Brent crude retreating back to $78 per barrel scale, compared to the elevated trading prices which hit $86-$87 per barrel in the last week of December.

Next week’s cost decline at the pumps follows the increase in prices which had been the initial blow of price adjustments in the start of year 2023.

According to industry experts, the plummet in global oil prices last week had been mainly attributed to the growing fears of economic recession – primarily in the United States; as well as the unsettling reopening of China from its long-held ‘zero tolerance’ Covid restrictions.

Within the enclave of the Organization of the Petroleum Exporting Countries (OPEC), it has also been reported that their collective output had risen with Nigerian production shoring up oil flow into markets.

It was noted that the rebound in Nigeria’s output added roughly 120,000 barrels per day into the production quota of the global oil cartel.

Market watchers similarly indicated that one factor which helped took the edge off on oil prices had been expectations of a ‘fruitful outcome’ of oil and gas exploration talks between Chinese President Xi Jinping and Philippine President Ferdinand Marcos Jr., during the latter’s state visit to the Asian super power last week.

At this stage, however, there are no categorical pronouncements from the two governments yet if there was a ‘specific agreement’ that was reached relating to the planned resumption of petroleum exploration activities at the diplomatically challenged West Philippine Sea.

Upstream oil and gas investors in the disputed territory had been in a bind for years already on their seismic survey and drilling plans due to lack of clear direction from the Philippine government on how they can proceed with their work programs – that was on the lack of compromise deal reached with China yet on propounded joint exploration activities.