Diesel, kerosene price rollbacks seen next week; gasoline price hike possible

Motorists can expect some relief in the coming week as pump prices of diesel and kerosene may be slashed by over P1.00, oil industry sources said Friday.

Citing data from Mean of Platts Singapore (MOPS) trading in the last four days, Department of Energy-Oil Industry Management Bureau Assistant Director Rodela Romero said the price per liter of diesel may decrease by P1.20 to P1.40, while kerosene prices might be reduced by P1.00 to P1.20 per liter.

Gasoline prices, meanwhile, may go up by P0.25 to P0.50 per liter.

An oil industry source, likewise, said that based on the four-day average of Mean of Platts Singapore (MOPS) trading gasoline pump prices may be rolled back by P1.30 to P1.40 per liter, while gasoline may see an increase of P0.25 to P0.35 per liter.

MOPS is the basis for pricing of refined petroleum products in Southeast Asia.

The local oil industry uses MOPS, the daily average of all trading transactions between buyers and sellers of petroleum products as assessed and summarized by Standard and Poor’s Platts.

“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,” Romero said.

Also influencing the fuel prices is the strengthening of the US dollar as it “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,” the DOE official said.

Moreover, she added that optimism regarding geopolitical developments in the Middle East, “specifically the lack of movement by Israel's defense forces into Gaza, has contributed to the decline in oil prices.”

Oil companies usually announce price adjustments every Monday, to be implemented the following day.

Effective Tuesday, October 23, fuel firms hiked prices per liter of diesel by P1.30, while that of gasoline was increased by P0.95 per liter.

Prices of kerosene, meanwhile, increased by P1.25 per liter. — DVM, GMA Integrated News