Oil prices on another round of declines next week – Manila Bulletin

Filipino consumers will get another shot next week on their fuel budgets as prices see another round of declines, albeit modest, with diesel products set to see a bigger cost cut from 1.80 to 2, 10 pesos per litre.

In addition, the oil companies have calculated a price reduction of P0.40 to P0.60 per liter for RON 92 petrol and P0.70 to P0.90 per liter for RON 95 petrol; while kerosene products will trend downward from P1.15 to P1.35 per litre.

Industry players will implement the adjustments on Tuesday, July 26, in line with routine cost swings applied in the deregulated downstream oil industry – and it will be anchored primarily on the Mean of Platts Singapore (MOPS) index. .

So far, the exchange rate has not exerted as much pressure on fuel prices during this new wave of price movements, as the value of the Philippine peso has remained relatively stable against the US dollar.

Ahead of next week’s cost moves, a Department of Energy (DOE) monitoring report showed fuel prices were still seeing net scale increases of P34.80 per liter of diesel; P29.35 per liter for kerosene; and 19.30 pula per liter for gasoline.

In the global market, after prices crashed below $100 a barrel last week, international benchmark Brent crude regained strength, recovering slightly to $104-105 a barrel from Friday July 22.

There had been an initial easing of prices in the world market last week with indications from Saudi Arabia, the world’s largest oil producer, that it would inject an additional 100 million barrels of oil into the markets of export.

With the series of price cuts over the past few weeks, Filipino consumers had so far been spared the ordeal of relentlessly rising prices at the pump – mainly out of fear that domestic oil prices could hit 100 pesos. the liter.

At this point, markets are still nervous about forecasts of an economic recession – which, on a large scale, could further dampen global oil prices due to a very likely contraction in demand. In turn, this will somehow be beneficial for an economy dependent on oil imports like the Philippines.

The new government leadership has yet to navigate its overall policy response to highly volatile oil prices, including the need for a long-term energy security agenda.

Industry players are already urging the Energy Department to push for a new round of oil and gas exploration activity in the country – as any commercial finds of gas or oil could help ease the predicament of the country in terms of the incessant surges in oil prices prevailing on the world market.

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