Mixed pump price movements seen next week
MANILA, Philippines — Oil firms are seen implementing a mixed movement in pump prices next week, with gasoline prices potentially extending its increases to a third straight week.
Department of Energy (DOE) Oil Industry Management Bureau assistant director Rodela Romero said that four-day trading estimates point to a potential P0.25 to P0.50 per liter price hike for gasoline, but possible rollbacks of between P1.20 and P1.40 per liter for diesel and from P1 to P1.20 per liter for kerosene.
An oil industry source, on the other hand, said indicative movement on pump prices next week is a P1.30 to P1.40 per liter decrease for diesel and a P0.25 to P0.35 per liter rise for gasoline.
“Crude oil prices weaken 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,” Romero said.
The DOE official said also influencing the price action fundamentally are the US dollar strength and optimism in the Middle East.
“The strengthening of the US dollar had a negative impact on oil prices today. 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 said.
“Optimism regarding geopolitical developments in the Middle East, specifically the lack of movement by Israel’s IDF into Gaza, has contributed to the decline in oil prices,” she said.
The final pump price adjustments will be announced by domestic oil companies on Monday, which will take effect the next day.
Last Tuesday, oil companies implemented upward adjustments of P0.95 per liter for the price of gasoline, P1.30 per liter for diesel and P1.25 per liter for kerosene.
These price adjustments resulted in a year-to-date net increase of P13.75 per liter for gasoline, P11.70 per liter diesel and P6.24 per liter for kerosene, DOE data showed.
DOE monitoring from Oct. 24 to 26 showed that prevailing retail prices of diesel and diesel plus products in Metro Manila ranged from P59 to P72.05 per liter and from P65.20 to P85.20