Local gasoline prices are poised for a minimal discount in the first week of November, while diesel and kerosene consumers can expect a price increase.
Starting Tuesday, Nov. 5, gasoline prices will decrease by P0.10 per liter, diesel will increase by P0.75 a liter, and kerosene will receive a P0.50 increment.
As of this writing, Shell Pilipinas, Clean Fuel, Sea Oil, and PetroGazz are some of the major oil companies that have disclosed the price adjustments a day ahead.
The shifting prices were based on the movements in premium, freight, and biofuel costs, according to Shell.
The mixed price movements were caused by the easing of Middle Eastern tensions. However, despite the slight relief to gasoline consumers, analysts and traders are still wary of the geopolitical risks that loom over the oil supply.
Leo Bellas, Jetti Petroleum president, earlier predicted that tighter diesel supply has put a floor on its price while the downside on gasoline has become limited.
Additionally, Bellas noted that there were regional refinery outages that contributed to the oil price adjustments.
While there are eight weeks left of price fluctuations this year, FocusEconomics stated last week that stakeholders are watching over the next OPEC+ meetings to go over oil production, China’s economic updates, and interest rates from the United States.
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By the end of October, the Department of Energy (DOE) reported a price decline on week-on-week of Dubai crude by $0.60 per barrel. Subsequently, the week-on-week international price of gasoline and diesel dropped by $0.60 and $0.15 respectively.
Despite the gasoline and diesel decrease, a barrel of kerosene had a dollar increment.
According to the DOE, Israel's clash with Syria and Lebanon was attributed for the price adjustments. In the Asian gasoline market, oil supply has also been tight.
“The Energy Information Administration's (EIA) weekly inventory report showed a 5.47 million-barrel rise in the US commercial crude oil inventories, significantly higher than the 1.6 million barrel increase,” the DOE noted.
In the case of FOREX, the week-on-week average of the Philippine peso deflated versus the US dollar by P0.13 to P57.77 by the last week of October.
“Year-to-date, total adjustment of gasoline and diesel stands at a net increase of P8.75 per liter and P6.55 per liter, respectively. On the other hand, kerosene has a total net decrease of P3.10 per liter,” the DOE stated.