Kerosene prices will also be reduced by P0.15 to P0.25 per liter, based on the calculation of the oil companies as hinged on the Mean of Platts Singapore (MOPS).
Next week’s adjustments will break the cycle of mixed up-and-down movements in pump prices which featured prominently in the domestic oil market in recent weeks.
In a monitoring report of the Department of Energy (DOE), it indicated that the year-to-date adjustments in oil prices hover at a net decrease of P4.67 per liter for gasoline; P10.01 per liter for diesel; and P13.44 per liter for kerosene.
Pump prices in the Philippines are influenced by two major factors: the swing in oil prices in the world market; and the fluctuations in the peso-dollar exchange rate.
According to the energy department, the demand recovery for oil in Asia will continue to track “bumpy roads” across products, with longer pace of rebound anticipated for the aviation sector.
It added that refinery runs in the region may scale up by the fourth quarter of this year, but price lifts may take longer to be concretized – and the assumption is for it happening through 2021.
Primarily for gasoline, it was noted that demand may still weaken because of the resurgence of Covid-19 infections, which may then lower winter driving activities especially in Europe.
Credit belongs to : www.mb.com.ph