DOE: Fuel prices to roll back this week

There will be a rollback in the pump prices of all petroleum products this week, according to the Oil Industry Management Bureau (OIMB) of the Department of Energy (DOE).

“Sigurado po na magkakaroon tayo ng rollback ... sa lahat ng petroleum products from gasoline, diesel, and kerosene,” OIMB director Rino Abad said in a Super Radyo dzBB interview.

(It is certain that we will have a rollback in the prices of all petroleum products from gasoline, diesel, and kerosene.)

He said gasoline prices are expected to dip by nearly P1 per liter, while diesel prices may decrease by around P1.50 per liter. Kerosene prices, on the other hand, may be reduced by more than P1.50 per liter.

Citing oil trading from February 20 to 23, an oil industry source told GMA News Online earlier that the price per liter of diesel may be slashed by P1.40 to P1.70.

Gasoline prices, meanwhile, may be reduced by P0.70 to P1.00 per liter.

Abad attributed the rollback to China’s lower oil import and higher crude inventory for the United States.

“Humihina ang importation ng China. Tumataas po ang inventory din sa US. Ibig sabihin, kapag humina ang importation galing China, lumolobo ang inventory ng US, masyado nang stabilized ang supply. Ibig sabihin, hindi nangangailangan itong dalawang pinakamalalaking bansa na makipag-agawan, makipag-negosasyon,” he explained.

(China's imports are decreasing, while the inventory of the US is increasing. When the importation from China weakens, the US inventory grows, meaning the supply is too stabilized. This means that the two largest countries need not to compete or negotiate.)

Despite this, Abad said that it is still uncertain if the rollback of fuel prices will continue in the next weeks to come.

Meanwhile, fuel company Unioil issued a fuel forecast for February 28 to March 6, saying diesel prices may go down by P1.20 to P1.40 per liter. Gasoline prices meanwhile may decrease by P0.70 to P0.90 per liter, it said.

Fuel companies are expected to announce their price adjustments on Monday, to take effect on Tuesday. —KG, GMA Integrated News