A significant weight will be lifted off from consumers’ pockets this week, as the price of gasoline products will be on hefty reduction of P1.55 per liter; while diesel prices will also go down by P1.30 per liter.

Kerosene, which is another commodity that is not just essential to household end-users but most especially as a base fuel for the aviation sector, will have its prices cut by P1.40 per liter.

As of press time, the oil companies that already announced their price rollback effective Tuesday (September 10) had been Shell Pilipinas Corporation, Cleanfuel, Chevron for the Caltex brand, Seaoil, PetroGazz and PTT Philippines; and their newly-imposed price adjustments are highly expected to be matched by competitors.

Prices in the world market have nosedived last week due to array of factors – primarily on the reported production boost to be enforced by the Organization of the Petroleum Exporting Countries (OPEC) and its partner-producers in the Vienna Alliance.

Against that backdrop is the anticipated slowdown in oil demand due to weak economic outcomes from key countries like China, a lingering factor pulling down prices for several months already.

Given such industry developments, traders’ sentiments last week leaned more on prospects that oil markets could be well-supplied with oil in the remaining months of this year.

For the Philippines – since it is depending heavily on oil imports, crashing international prices will come across as a favorable news to its consumers, because that additional money they’re supposed to spend at the pumps could be better spent on other needs.

Nevertheless, projections for oil price swings are not cast in stone and these could turn notoriously volatile again in the days and weeks ahead if geopolitical events would intensify or there would be concerns of supply disruption.

Beyond fluctuation in global oil prices, this week’s cost movement at the domestic pumps had likewise been influenced by the strengthening of the Philippine peso’s value versus the US dollar.

As of Monday (September 9) trading, international benchmark Brent crude was still hovering at $71 per barrel, although there are indications that prices may track uptrend as major users, like China, may boost imports to meet higher seasonal demand for the winter season.