Fuel prices seen to go down next week

OIL industry sources said on Friday that fuel prices will finally go down next week, starting Tuesday.

Sources said that gasoline prices will have an estimated rollback from 70 to 90 centavos per liter, while both diesel and kerosene prices will decrease by P1.20 to P1.50 per liter.

These estimates are based on the four-day trading of the Mean of Platts Singapore, the pricing basis of refined goods in Southeast Asia.

According to the Department of Energy's Oil Industry Management Bureau (DoE-OIMB) the reason for next week's fuel price movements are mostly due, again, to the influence of OPEC+'s decision to extend oil production cuts.

«Oil prices remain under pressure this week despite the Organization of the Petroleum Exporting Countries and their allies (OPEC+) agreeing to extend their voluntary production cuts of 2.2 million barrels per day until the end of this year.

»This decision was a response to growing concerns over weakening demand growth, high interest rates and increased production from the US," DoE-OIMB Director Rodela Romero said.

On June 4, local oil companies implemented a mixed adjustment on the price of petroleum products as gasoline prices have decreased by 90 centavos per liter while diesel and kerosene prices increased by 60 centavos and 80 centavos per liter, respectively.

On a year-to-date basis and after adding the adjustments from June 4, 2024, the total adjustment of gasoline and diesel stands at a net increase of P6.65 per liter and P5.55 per liter, respectively.

Kerosene, on the other hand, has a net decrease of 25 centavos per liter.