Hefty oil price cuts seen next week in Philippines

PHOTO

Motorists can expect fuel prices to go down next week, according to the Department of Energy.

DOE-Oil Industry Management Bureau assistant director Rodela Romero estimated a decrease of P0.70 to P0.90 per liter in the pump price of gasoline.

Meanwhile, rollbacks of P1.20 to P1.50 per liter are seen next week for diesel and kerosene, she said.

Romero said fuel prices remain 'under pressure' following the OPEC+ decision to extend the voluntary production cuts of 2.2 million barrels per day until the end of the year.

'This decision comes in response to growing concerns over weakening demand growth, high interest rates and increased production from the US,' she explained.

Currently, OPEC+ is implementing a total production cut of 5.86 million barrels daily.

The DOE earlier said that oil prices may swing in both directions for weekly prices, as there is no oversupply or undersupply in the global market.

Last Tuesday, oil companies lowered the pump price of gasoline by P0.90 per liter, while that of diesel and kerosene increased by P0.60 and P0.80, respectively.

Year-to-date, the total adjustment for gasoline and diesel prices stands at net increases of P6.65 and P5.45 per liter, respectively.

On the other hand, the price of kerosene has a net decrease of P0.25 per liter.

Oil companies are expected to announce the final price adjustments on Monday, which will take effect the next day.