P2 oil price rollback takes effect

Another big time rollback in pump prices took effect on Tuesday, Nov. 13, by at least PHP2 per liter.

Oil firms announced on Monday that they will cut diesel prices by PHP2 per liter while lowering gasoline prices by PHP2.30 per liter.

This is the highest oil price rollback implemented by local oil firms in five consecutive weeks of cutting retail prices.

As of last week, the average price for gasoline is at PHP56.30 per liter and PHP45.60 for diesel.

Data from the Department of Energy (DOE) show that from Oct. 29 to Nov. 2, gasoline and diesel decreased by USD2.60 and USD2.20 per barrel, respectively, as shown by the Mean of Platts Singapore index.

As of Nov. 6, the strengthening of Philippine peso also helped tame oil prices as the local currency appreciated by PHP0.21 against the dollar last week, compared to its previous trading week.

“Year-to-date adjustments are now at a net increase of PHP6.20/liter for gasoline, PHP9.10/liter for diesel and PHP8.28/liter for kerosene,” DOE noted.

In a Palace briefing last week, DOE Secretary Alfonso Cusi mentioned that forecasts show that world oil prices will stay below USD80 per barrel.

Cusi said this is mainly due to an increase in oil production, as well as lighter sanctions by the United States against Iran, after the former granted a waiver to eight importers allowing them to temporarily continue sourcing from the Middle Eastern country. (PNA)