Gasoline prices likely to increase Tuesday; diesel may rollback

Domestic prices of gasoline products are expected to increase in the 10.70 to 10.85 per liter range, while diesel prices may soften with a very marginal rollback of 10.10 per liter or no price change at all this week.

The adjustments were projected by industry players based on the outcome of the four-day trading in the world market last week. But this may still change depending on the result of Friday’s trading culmination.

The oil companies are expected to adjust their prices on Tuesday (March 12), with industry players expected to adopt the usual “follow-the-leadof-competitor” type of cost movements – a trend in the deregulated downstream oil industry.

Prior to next week’s price swings, the average per liter cost of gasoline in Metro Manila, based on the monitoring of the Department of Energy (DOE), was at 146.40 to 157.84 per liter range; diesel at the 139.90 to 145.20 per liter range; and kerosene at the 145.17 to 153.58 per liter range.

The gasoline prices of leading oil firm Petron Corporation – depending on octane number or the measure of knock resistance of gasoline – had been hovering at 147.29 to 157.84 per liter; its diesel prices at 142 to 144.99 per liter; and kerosene at 145.17 to 153.31 per liter.

The industry’s No. 2, Pilipinas Shell Petroleum Corporation, had been retailing gasoline products at Metro Manila pumps within the price latitude of 147.19 to 157.31 per liter; and diesel at 144.29 to

145.04 per liter.

Brent and West Texas Intermediate (WTI) crudes were on downtrend most of last week’s trading, but Dubai crude had been slightly up and touched closer to US$66.50 per barrel.

Global market watchers attribute the softening of prices to the weakening global economic data, which in turn has been taking the edge off on oil demand.

The overall market drift, however, is still on the volatility plane – especially with Saudi Arabia sounding off serious tone to adhere to its production cut commitment.

In the alliance of the Organization of the Petroleum Exporting Countries (OPEC) and its non-OPEC (NOPEC) counterparts, Saudi Arabia pledged to trim output by as much as 322,000 barrels of oil per day (bpd) – out of the 1.2 million barrels production cut commitment.

Philippine pump prices follow the world market’s cost swings – and being an oil heavy importing country, it runs sensitive to various geopolitical factors affecting international prices.