In the midst of plummeting prices in the world market, the costs of gasoline at the pumps will be rolled back again by P1.30 per liter this week; and P1.10 per liter for diesel products.
According to the Department of Energy (DOE), which has been manifestly elated with the continuing cost downtrends, this is already the 16th time that gasoline prices had been rolled back for the year; and 17th for diesel products.
As of this writing, the oil firm that revved up competition on the price reduction sphere had been Phoenix Petroleum Philippines Inc. of businessman Dennis Uy, with its rollbacks enforced effective 12 noon of November 17 (Saturday); and such announcement was followed by Jetti Petroleum for price cuts on November 19 (Monday).
As had always been a pattern in the industry, all the other industry players follow the weekly price swings sparked off by their competitors. For most, Tuesday’s adjustment is the routine.
Relative to cost movements, the DOE indicated that duration of increases still dominated the year – totaling 29 weeks for both gasoline and diesel products.
From January to November 17, gasoline prices had gone up by as much as P18.20 per liter versus the 16-rollback duration which logged total price cuts of P15.60 per liter. Overall, there is still a net increase of P2.60 per liter in gasoline prices.
For diesel, which is the fuel necessity for most public utility vehicles (PUVs), price hikes summed up to P19.50 per liter vis-à-vis total cost rollbacks of P13.50 per liter. Essentially, there’s still P6.00 per liter net increase for this commodity type.
Kerosene prices were likewise reduced 16 times already (as of November 13) for a total of P12.82 per liter; while increases reached as much as P19.25 per liter; thus, the net increase for this product is still at P6.43/liter.
Cooking fuel liquefied petroleum gas (LPG) has been down four (4) times this year for aggregate P12.67 per kilogram; and seven (7) duration of increases totaling P12.50, thus leaving the balance at just very marginal P0.17 per kilogram.
Global oil prices in last week’s trading had been on continued downswing – with Dubai crude, which is the benchmark for Asian markets, dropping to US$67 per barrel level; while the overall basket of crudes for producers in the league of the Organization of the Petroleum Exporting Countries (OPEC) nosedived to US$65 per barrel.
Brent crude went a bit higher at US$66 per barrel; while West Texas Intermediate (WTI) crude for the US market had dipped to as low as US$56 per barrel.
However, following the decline in prices in the past six weeks, recent market developments had not been as promising with largest oil producer Saudi Arabia sounding off plans to cut oil exports so sagging prices could recover.
Industry watchers, nevertheless, are closely keeping an eye on this market momentum – if Saudi’s collision course against the shored up inventories of the US would really be effective in curbing falling oil prices.
source: manila bulletin