P1 fuel price cut set next week

September 7, 2024 | 12:00am

MANILA, Philippines — Motorists can breathe a sigh of relief next week as domestic pump prices are expected to go down by at least P1 per liter.

The Department of Energy-Oil Industry Management Bureau (DOE-OIMB) estimated a rollback of P1 to P1.30 per liter for gasoline and diesel and P1.20 to P1.35 per liter for kerosene.

The estimates were based on the four-day trading in the Mean of Platts Singapore.

DOE-OIMB assistant director Rodela Romero said the anticipated downward adjustments reflect recent developments in the global oil market, including the poor demand from China and the US.

There are also reports that OPEC+ plans to increase oil output by 180,000 barrels per day starting in October, she noted.

The official added that the possible restoration of Libyan oil production, which experienced a sudden halt recently, has also brought downward pressure at the domestic pumps.

The oil shutdown in Libya caused supply risks as the country has been considered one of the largest crude oil producers in OPEC and among the biggest total petroleum producers in Africa.

Last Tuesday, oil companies hiked pump prices of gasoline, diesel and kerosene by P0.50, P0.30 and P0.70 per liter, respectively.

Since January, gasoline and diesel prices have increased by P7.40 and P4.35 per liter, respectively, while that of kerosene has decreased by P3.30 per liter.