MANILA, PHILIPPINES – Oil firms will implement a price rollback on Tuesday, February 13.
CleanFuel, SeaOil, and Shell each issued separate advisories announcing price reductions for the following fuel products:
- Diesel prices – down by P0.10 per liter
- Gasoline prices – down by P0.60 per liter
- Kerosene prices – down by P0.40 per liter.
The announcement of the oil rollback occurred last week. According to the oil companies’ initial 4-day calculations, the biggest reduction in prices will be for gasoline, which will drop from P1.10 to P1.50 per liter; diesel prices will drop from P0.40 to P0.80 per liter; and kerosene prices will drop from P0.35 to P0.75 per liter.
In the event that the price reductions are based exclusively on the Mean of Platts Singapore (MOPS) index, the anticipated decreases are estimated to be P1.292 for gasoline, P0.638 for diesel, and P0.628 for kerosene products per liter.
The Department of Energy (DOE) reported that cost fluctuations since the beginning of the year have already resulted in a net increase of P5.15 per liter for gasoline, P4.40 per liter for diesel, and P0.85 per liter for kerosene. This is in addition to the upcoming round of changes in oil prices.
New pricing volatility has been sparked by colliding elements, but overall market sentiment last week indicated weakness in demand, which led to a drop in trade prices overall.
The Middle East’s escalating tensions had been the main driver of recent price increases, but as talk of a “ceasefire” between Hamas and Israel’s soldiers increased, pricing pressure somewhat subsided.
However, the situation as of Thursday’s (February 8) trade suggests a different direction, which in turn drove the price of Brent crude, the global benchmark, to a new high of $81 per barrel.
Industry analysts have observed that the increasing tension in the Middle East was not alleviated by Israel’s rejection of Hamas’ “ceasefire” proposal; in fact, the US forces’ execution of a militant commander in Iraq made matters worse.
If the current market trend continues, it could be a sign of impending price increases that will hurt Filipino consumers’ wallets even more the following week.
There are still some oil companies that have not yet announced their price adjustments.