On Tuesday, March 22, oil companies are expected to cut petroleum product pump prices for the first time in 11 weeks.
Following 11 weeks of continuous fuel price rises that began in January of this year, consumers are finally receiving some relief.
On Monday, oil companies announced a major price reduction in petroleum products, P11.45 for a liter of diesel, P5.45 for gasoline, and P8.55 for kerosene.
The new rates will take effect this day, Tuesday at 6 a.m., and other firms are anticipated to fall into line with the same pricing.
This is the first local pump price cut since December of last year when oil companies reduced their pricing by P2 to P3 per liter.
Despite the fact that this is the first double-digit decrease in fuel prices this year, the reductions were insufficient to overcome the year’s net price rises.
Diesel had increased by P30.65, gasoline by P20.35, and kerosene by P24.90 prior to the pullback. Oil firms imposed the largest ever hike in local pump prices, ranging from P7 to P13 per liter, last week.
The most recent decrease was caused by a drop in global oil prices last week, yet rising tensions with Russia and Ukraine could easily reverse the downward trend.
The International Energy Agency however emphasized that the drop in crude prices could be transitory and that if Russian oil is blocked off from the rest of the globe as part of sanctions being contemplated by Western countries, a supply deficit could result.
To offset the economic impact of rising gasoline prices, the government has issued fuel subsidies for both public transit and agricultural.
Oil prices around the world are still erratic. On Friday, March 18, benchmark Brent crude prices finished 8.79 percent higher at $106.64 a barrel, the largest percentage rise since mid-2020. – WhatALife!