Big-time fuel price rollback eyed

A big-time rollback of more than 11.00 per liter will likely give financial relief to Filipino consumers next week, based on the calculation of oil companies.

As President Duterte delivers his State-ofthe-Nation Address (SONA) tomorrow, July 23, it is expected that oil companies will announce price cuts that will likely be heftier than 11.10 per liter for gasoline and diesel; and even bigger

11.30 per liter for kerosene products. A source from the Department of Energy (DOE) has affirmed that “price

rollbacks may hover at liter across products.”

The oil industry players indicated that price reductions will be enforced on the customary Tuesday price adjustment, hence, that will take effect on July 24.

Prior to next week’s rollback, a DOE monitoring shows that diesel prices have been averaging from to per liter; gasoline at to per liter; while kerosene prices had been at average to per liter.

As of Friday, trading in the international market, Dubai crude, which is the benchmark for Asian oil markets, closed at US$72.44 per barrel; while Brent crude prices dropped significantly to US$73.07 per barrel. to per

Last week’s softening in prices in the world market had been largely attributed to the decision of the Organization of the Petroleum Exporting Countries (OPEC) and Russia to inject additional supply to market as well as the beefed up inventories of the United States.

Given the very volatile swings in prices, however, such as the sizeable downtrend this week, the plan of the Philippine government to import diesel oil is being placed on even more rigorous scrutiny.

The state-run Philippine National Oil Company-Exploration Corporation (PNOCEC) intends to spend billion for its proposed diesel importation – and will also be coughing up additional capital in setting up its own oil distribution networks.

In the legislative branch, calls for suspension of the second tranch of petroleum excise taxes are still on intensified scale, given the lingering impact of “inflation overheat” on the prices of basic commodities.

The policy framers though are taking a close watch as to how supply-demand balance as well as how prices will shape in the global market in the coming weeks or months before taking heated debates on suspending petroleum taxes.

Under the Tax Reform for Acceleration and Inclusion (TRAIN) Act, the excise tax of diesel will climb to per liter in 2019 from per liter at present; gasoline to per liter from

per liter; and liquefied petroleum gas (LPG) going up to per kilogram from per kg at present.