OIL PRICES SEEN CLIMBING AGAIN NEXT WEEK AFTER WEEKS OF ROLLBACK

Oil prices might climb again next week or "no change" based on oil industry estimates (Photo courtesy of GMA Integrated News)

After a two-week downtrend in pump prices of petroleum products, it is expected to increase by as much P0.90 per liter in the last week of September. Based on the four-day trading of the Department of Energy-Oil Industry Management Bureau (DOE-OIMB), the estimated fuel price adjustments are:

Gasoline -  P0.40 to P0.90 per liter

Diesel -  P0.00 to P0.40 per liter

Kerosene - P0.00 to P0.20 centavos per liter

DOE-OIMB assistant director Rodela Romero that the anticipated oil price hike are attributed to the following:

• US Fed Reserve makes aggressive interest rate cut weeks before their Presidential election
• Tension in the Middle East that attack on Hezbollah members across Lebanon offered some price support due to potential supply disruption
• Decline in US crude inventories
• For Asia, Japan refinery under maintenance and Malaysia removes their subsidies to gasoline with octane grade of 95

Oil firms usually announce official price adjustments every Monday, which will take effect on the following day, Tuesday. “Mixed movements will be implemented in the domestic pump prices by next week.”

The recent price movements has brought year-to-date total adjustment of gasoline and diesel to stand at a net increase of P4.85 per liter and P1.75 per liter, respectively, while kerosene has a total net decrease of P6.35 per liter.

Meanwhile, Senator Sherwin Gatchalian urged his colleagues to enact a law that would institutionalize transparency in the movements of petroleum prices ensuring welfare and interests of consumers are protected.

Gatchalian earlier filed Senate Bill (SB) 2081 seeking to amend Republic Act 8479 otherwise known as the Downstream Oil Industry Deregulation Act by institutionalizing transparency in the industry. “To guarantee transparency and fair retail pricing, information related to any significant adjustments in oil prices should be made available to the public.”

Source: Philippine News Agency

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