Another round of fuel price rollback to take effect Tuesday

Fuel companies announced a reduction in petroleum product pump prices beginning on Tuesday, July 26, marking the fourth consecutive week of price cuts.

In separate advisories, Pilipinas Shell, Chevron Philippines Inc. (Caltex), Petron Corp., and Seaoil Philippines Inc. said they would slash the prices per liter of diesel by P1.85, gasoline by P0.40, and kerosene by P1.30.

Petro Gazz, PTT Philippines, Phoenix Petroleum Philippines, and Cleanfuel will implement the same price adjustments, excluding kerosene, which they do not carry.

The price changes will take effect at 6 a.m. on Tuesday, except for Cleanfuel and Chevron, which will implement the adjustments at 8:01 a.m. and 12:01 a.m., respectively.

Petron said the scheduled fuel price rollback reflects "movements in the international oil market."

Department of Energy-Oil Industry Management Bureau Director Rino Abad said last week that this week's rollback in pump prices is possible due to the European Central Bank’s (ECB) announcement of an interest rate hike causing the trading prices of fuel to go down.

The ECB raised its benchmark deposit rate by 50 basis points, its first rate hike in 11 years.

Fuel prices are expected to continue their downtrend if the US Federal Reserve hikes its interest rates aggressively, as the move could temper economic activity or lower demand, which will eventually lower commodity prices, according to Abad.

Latest data available from the DOE, as of July 19 to 21, show the price per liter of diesel ranging from P73.30 to P81.41 in Quezon City, Metro Manila’s largest city, while gasoline prices range between P70.20 and P77.45 per liter in Manila, the Philippines’ capital. —KG/VBL, GMA News