November 29, 2024 | 4:12pm
MANILA, Philippine — Gasoline prices are projected to increase in the following weeks, a Department of Energy (DOE) executive said on Friday, November 29.
DOE Director of Oil Industry Management Rino Abad said in a radio interview that, based on oil trading trends, there will be mixed price movements.
Gasoline prices are set to increase by P0.50 to P0.80 per liter, while diesel and kerosene prices are expected to decrease by P0.10 to P0.30 per liter.
Abad said that this projection was unlikely to change, even with the last day of trading being on Saturday, November 30.
For LPG, prices can increase up to P2 per liter.
However, Abad said that there will be an oversupply of oil in the world market when 2025 arrives, signifying a possible rollback.
“Magkakaroon talaga ng oversupply come 2025. So first quarter, tama kaagad ang oversupply of around 1 million barrels over and above nung demand. So ang demand natin, nasa 104 to 105 million barrels per day globally,” Abad said on DZBB.
(There will be an oversupply come 2025. So by the first quarter, there will be an oversupply of 1 million barrels over and above the demand. So our demand is around 104 to 105 million barrels per day globally.)
Abad said this will mark a major reversal of what happened in 2024. While there have been rollbacks, they have been sporadic.
In April 2024, crude oil price was at $90 per barrel but this November, crude oil was priced at $72 per barrel.
There will be a good chance that the price can go below $70 per barrel, returning to the $60 per barrel territory.
More or less, this would return the Philippines’ oil prices to January 2024 levels. Abad said this would mean gasoline prices around P58 per liter, with diesel ranging from P52 to P54 per liter.
This is the best outcome, said Abad. However, it will still be subject to several factors. The government has largely attributed the rising oil prices to geopolitical tensions in the Middle East, as well as the Ukraine-Russia war.
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