Motorists using diesel will be greeted with cheers at the domestic pumps this week, as the price of this commodity will be reduced by a significant P1.20 per liter, based on the pricing adjustment advisories of the oil companies.

For those filling up their vehicles with gasoline, the price cut will be leaner at P0.60 per liter; while those using kerosene will also experience greater financial relief of P1.30 per liter for the product.

As of this writing, the oil firms that already advised on their price rollback had been Shell Pilipinas Corporation, Cleanfuel, Seaoil and Chevron; while their rival-firms are expected to match the pricing adjustments.

Prior to this round of cost movements, a monitoring report of the Department of Energy (DOE) has shown that price adjustments since the start of the year already resulted in net increases of P6.65 per liter for gasoline and P5.45 per liter for diesel; while kerosene still posted a net decrease of P0.25 per liter.

The cost swings at the pumps generally follow the Mean of Platts Singapore (MOPS) index, which is the reference pricing for imported oil commodities into the country.

According to global experts, market sentiments had been generally bearish last week – that even the decision of the Organization of the Petroleum Exporting Countries and ally-producers (OPEC+) to extend production cuts had not done much to lift sagging prices.

There had also been hints from major world producers like Saudi Arabia, Russia and United Arab Emirates (UAE) that they can reverse the policy or take a ‘pause’ depending on how market fundamentals would be shaping in the months ahead.

International benchmark Brent crude, in particular, had decelerated to the $78 per barrel level most of trading days last week; and that defied market anticipations of possible run-up in global oil prices.

Nevertheless, as of end-Friday (June 7) trading, news of prospective interest rate cut to be enforced by the European Central Bank (ECB) as well as the plan of the US Federal Reserve for interest rate cut by September had triggered new round of price elevation into the $80 per barrel territory.

For the Philippine market, in particular, the other market odds that oil industry players have been confronted with is the depreciating value of the Philippine peso versus the US dollar, but the impact of that other pricing yardstick, was still tamed by the downswing of international oil prices.