Diesel prices may drop by P1/L next week, gasoline and kerosene seen up

MANILA, Philippines, October 3 ------ A mixed price adjustment on local oil and fuel products is expected next week, the Department of Energy (DOE) said.

According to the agency, the first four days of trading in the global market indicate a potential P1 per liter price cut on diesel, while an increase of P1.50 per liter in gasoline and P2 per liter in kerosene is likely. DOE Oil Industry Management Bureau Director Rino Abad explained that while the global prices of all petroleum products have recently increased, last week’s rollback on domestic diesel products will have a carry-over effect on next week’s prices.

This week, diesel was down by P7.57 per liter, gasoline by P0.24, and kerosene by P5.85. “‘Yung diesel, sa sobrang laki ng binaba niya last week, ‘yung pagtaas ngayon hindi pa rin niya na nasapawan ‘yung last week kaya meron pang natirang rollback. But in the case of gasoline and kerosene talagang lumagpas na ho,” Abad said in an interview with Super Radyo dzBB. Abad said the prices may settle within this range as Saudi Arabia continues to restore its pipeline and given the current situation in the Middle East.

Possible hike looms

The DOE raised concerns about possible upward price adjustments in October after China announced that it will suspend its exports of refined products to the Asia-Pacific region. “Medyo masamang balita lang, nag-announce kasi ang China na hindi muna sila mag-export ng refined products sa Asia-Pacific buyers. Hindi na ho ito crude oil tightness. Ito'y magiging refined product tightness kasi isa hong malaking refining country ang China,” Abad said.

According to Abad, the decision by China may create “refined products tightness” as other countries will need to either increase their output or seek more distant markets, which will add costs and drive up retail prices. “Hindi ho pa natin makita ang ang magiging sitwasyon nga this October. Kung pupwede ho, marami pa naman hong bansa na pwede sa labas. For example, lalabas ka US, Canada, ah, Australia,” Abad added. “Kaya mayron ‘yang epekto talaga sa price sakali.”

Source: philstar.com