Diesel forecast to lead oil price cuts next week

Domestic pump prices may go down by as much as P1.70 per liter next week to reflect the movement of prices in the world oil market, an industry source said.

The source said the forecast of an oil price rollback is based on the indicative movement of pump prices computed based on four-day trading and foreign exchange movement.

“Diesel—possible rollback of P1.50 to P1.70 per liter. Gasoline—possible rollback of P0.90 to P1 per liter,” the source said.

Reuters reported on Thursday that oil prices went up due to expectations of Russian production cuts beginning next month but higher US inventories also affected the movement of prices.

Despite optimism over China’s economic reopening which boosted oilprices, US inflation fears which could affect demand also tempered the upward movement of oil prices, reports said.

On February 21, oil firms raised the price of diesel by P1.05 per liter and P0.90 per liter for gasoline but cut the price of kerosene by P0.25 per liter.

World prices have see-sawed in recent weeks due to market volatilitiesarising from the US-Ukraine war and demand forecasts from the US and China, the world’s biggest oil consumers.