The drive at the start of the year will bring slight cheers to motorists as the price of diesel products will be on a moderate rollback of P0.35 per liter; while gasoline prices will have a marginal reduction of P0.10 per liter, according to the price adjustment advisories of the oil companies.

In this week’s cost movements at the pumps, the commodity that logged heftiest price decline had been kerosene at P1.40 per liter – and this is an essential base for aviation fuel as well as a major product patronized at households and other industries.

As of press time, the oil firms that already sent notices on their price cuts effective Tuesday (January 2) had been Shell Pilipinas Corporation; Cleanfuel, Seaoil and PetroGazz while competitors are all anticipated to follow.

Conversely, leading oil firm Petron Corporation advised of P3.40 per kilogram hike on the price of its liquefied petroleum gas (LPG) and rival firms are expected to match this adjustment, a development that would prompt unsettling backdrop into families’ merriment into the New Year because that would entail added strain on their budgets.

With the newly announced price adjustment, the aggregate increase for this cooking commodity will be P37.40 for the standard 11-kilogram LPG cylinder commonly used at households.

For fuel at the pumps, the seesaw in weekly prices last year so far registered net increases by end-year 2023; and volatile price movements had been the same prognosis laid down by global experts reigning in oil markets this year.

Toward the yearend, the major development that jolted oil markets had been the attacks launched by Houthi militants at the Red Sea, which is a major route for shipping vessels delivering oil as well as liquefied natural gas (LNG) commodities to various countries in the world.

That geopolitical incident initially resulted in upticks for international oil prices with international benchmark Brent crude inching up to $80 per barrel two weeks prior to the close of 2023.

However, in the last week of the year that passed, global oil prices eased back to $77 per barrel level on continuing concerns of slowdown in global economic growths, hence, that precipitated the downtrend in prices to be experienced by consumers at the pumps by the starting week of the year.

For an oil import-dependent economy like the Philippines, surge in fuel prices will always spark off undue financial distress not just on the pockets of its consumers; but it will similarly trigger inflationary pressure on the country’s overall economy.