Diesel price down next week; gasoline up
MOTORISTS and direct fuel consumers can expect a mixed movement in the prices of petroleum products next week.
According to oil industry sources, local diesel prices are seen to drop by around P1.30 to P1.40, while local kerosene prices could decrease by P1 to P1.20. Meanwhile, local gasoline prices could increase by P0.25 to P0.35.
All prices are based on the four-day trading of Mean of Platts Singapore.
Pressed for comment, the Department of Energy-Oil Industry Management Bureau (DoE-OIMB) said the reason for the mixed movement was due to recent developments in geopolitical events as well as the strengthening of the US dollar.
«Crude oil prices weakened despite geopolitical tension as diplomatic efforts in the Middle East intensified in an attempt to contain the conflict between Israel and Hamas, easing investor concerns about potential supply disruptions and reducing geopolitical risk premium,» DoE-OIMB director Rodela Romero said.
He said, «Another factor that contributed to the current movement of local oil prices is the optimism regarding geopolitical developments in the Middle East, specifically with the lack of movement by Israel's IDF (Israel Defense Forces) into Gaza.»
«Also influencing the price action fundamentally was the strength of the US dollar, as it had a negative impact on oil prices on Oct. 27, 2023. Oil is typically priced in US Dollars, so when the dollar rises, it can make oil more expensive for buyers in other currencies, leading to lower demand and lower prices,» Romero added.
Philippine oil companies implemented another round of increases for their petroleum product prices for this week, which started on Oct. 24, 2023.
All oil companies raised their gasoline prices by P0.95 per liter, diesel prices by P1.30 per liter and kerosene prices by P1.25 per liter.
Meanwhile, Regina Capital Development Corp. Managing Director Luis Limlingan said oil prices eased on Friday, October 27, as the US crude stockpile cues declining demand.
Brent crude futures went down by 2.1 percent to $88.21 per barrel, while US West Texas Intermediate futures went down by 2.26 percent to $83.46 per barrel.