PETROLEUM PRICES MOVEMENT SEEN NEXT WEEK

Oil prices may be expected by the second week of August according to the Department of Energy (Photo courtesy of Philippine Star)

Reduced prices for petroleum products are expected in the coming week of August, citing industry estimates based on four-day international trading the price adjustments could be implemented next week.

According to Department of Energy-Oil Industry Management Bureau Director III Rodela Romero, it is possible that the price of diesel will decrease by P0.20-P0.40 per liter, it is possible that the price of gasoline will not move or may decrease by P0.20 per liter. The possible price reduction for kerosene is around P0.30 to P0.35.

Romero also said that the impending drop in oil prices is due to China's low demand, she said that the statement by the countries that are members of the Organization of Petroleum Exporting Countries (OPEC+) that they will increase the supply of petroleum in the global market also helped.

“The downward pressure is attributed to the weakening demand from China and the plans of OPEC+ to increase supplies in the world market. On the other hand, crude oil futures extended gains yesterday due to the escalating geopolitical risk from renewed conflict in the Middle East and the lower US crude inventories,” she said.

Meanwhile, LPG manufacturers have a minimal price hike that started on August 1 Petron (P0.30/kg increase) and Solane (P0.27/kg). The companies clarified that the price increase will not be implemented yet in Metro Manila and areas under state of calamity.

It remains unclear when the actual price increase for LPG will be implemented, since each local government unit has a different declaration of calamity date, but the price freeze for LPG and kerosene will only last for 15 days.

Source: ABS-CBN News 

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