Gasoline prices seen to rollback by about P2/liter, diesel may go up next week

Motorists should expect pump prices of gasoline and kerosene to go down for another round, while diesel might go up or have no change in the coming week.

Citing data from the four-day Mean of Platts Singapore (MOPS) trading, Department of Energy-Oil Industry Management Bureau Assistant Director Rodela Romero said, “We are expecting a mixed movement on the prices of petroleum products.”

The price per liter of gasoline may go down by P1.60 to P1.90, while diesel might “have no movement or increase of P0.10 to P0.20 per liter,” according to Romero.

Kerosene, meanwhile, may roll back by P0.40 to P0.60 per liter.

An oil industry source, likewise, told GMA News Online that gasoline prices may be slashed by P1.80 to P2.00 per liter while diesel may be hiked by P0.10 to P0.30 per liter based on the MOPS trading from September 25 to 28, 2023.

MOPS is the basis for pricing of refined petroleum products in Southeast Asia.

The local oil industry uses MOPS, the daily average of all trading transactions between buyers and sellers of petroleum products as assessed and summarized by Standard and Poor’s Platts.

Romero said the anticipated rollback in fuel pump prices was attributed to “elevated interest rates, higher US dollar, and the relaxation of Russia's fuel import ban.”

However, the DOE official said that “prices are still volatile and we need to manage our expectations.”

She added that factors for an increase are still at play such as the extension of the voluntary cuts of Russia and Saudi until the end of December 2023.

“Added to it, are the fall of the US stockpile contributing to worries of tight global supplies and unexpected strong demand from China,” Romero said.

Oil companies usually announce price adjustments every Monday, to be implemented on the following day.

On September 26, fuel firms implemented a decrease of P0.20 per liter for gasoline and diesel, and P0.50 per liter for kerosene.

The latest price adjustments resulted in year-to-date net increase of P17.30 per liter for gasoline, P13.40 per liter diesel, and P9.44 per liter for kerosene.

In Metro Manila, gasoline prices range from P63.05 to P83.55 per liter, diesel range between P62.60 to P73.75 per liter, while kerosene range from P80.25 to P92.59 per liter.—AOL, GMA Integrated News