Fuel prices seen to roll back, diesel to have over P2/L cut

Motorists should expect another sigh of relief in the coming week as pump prices of petroleum products are expected to have another round of rollback, with diesel seen to be slashed by over P2 per liter, oil industry sources said Friday.

Citing industry estimates based on four-day monitoring on Mean of Platts Singapore (MOPS) trading, Department of Energy-Oil Industry Management Bureau Assistant Director Rodela Romero told GMA News Online that the estimated price reductions next week are as follows:

• Diesel - P2.40 to P2.70 per liter
• Kerosene - P1.65 to P1.85 per liter
• Gasoline - P0.60 to P0.80 per liter

An oil industry source, likewise, said the price per liter of diesel may be slashed by P2.50 to P2.80, while gasoline prices may be reduced by P0.60 to P0.90 per liter, based on the November 4 to 9 average of MOPS trading.

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.

Romero said the expected price rollbacks could be attributed to “demand destruction worries with falling demand of US and China's weak exports.”

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

Effective Tuesday, November 7, fuel firms implemented a rollback on the per liter prices of petroleum products.

The price of gasoline, diesel, and kerosene were slashed by P0.45, P1.10, and P1.05, respectively.

The latest price cuts brought the year-to-date price adjustments to stand at a net increase of P13.75 per liter for gasoline, P9.35 per liter for diesel, and P3.99 per liter for kerosene.

In Metro Manila, the prevailing retail prices of gasoline range from P57.94 to P76.80 per liter, diesel prices range between P57.40 and P69.70 per liter, while kerosene prices range from P74.00 to P87.14 per liter. – RSJ, GMA Integrated News