Petrol in heavy hiking; diesel and kerosene down – Manila Bulletin
Petroleum products will see mixed price adjustments next week, with gasoline up sharply while diesel and kerosene will see a significant drop.
Based on calculations by industry players, the price of 92 RON petrol will increase from P4.10 to P4.30 per liter while 95 RON petrol will undergo higher adjustments of P4.60 at P4.80 per litre.
For diesel fuel, this is expected to drop from P2.40 to P2.60 per liter while kerosene prices will be reduced from P2.30 to P2.50 per litre.
Oil companies will implement the price adjustments on Tuesday, May 24. The price adjustments are anchored on fluctuations in Mean of Platts Singapore (MOPS) costs, the price benchmark used by the downstream domestic oil industry.
As can be seen from the Department of Energy (DOE) monitoring report, price adjustments since the beginning of the year have again resulted in net increases of 21.60 pula per liter of gasoline; 31.40 pesos per liter for diesel; and P27.65 per liter for kerosene.
Industry experts noted that the main factors that triggered a new wave of turmoil in oil prices were the $220 billion plan unveiled by the European Union (EU) to end dependence on Russian fossil fuels by 2027.
Nonetheless, market watchers believed that China’s decision to buy more crude from Russia – mainly to replenish its strategic oil reserve – provided a counterbalance to the EU’s targeted rejection of Russian oil.
The deal reached between Russia and China is a government-to-government deal, a move that is meant to compensate for any market loss that Russian oil would suffer with the EU rift.
And while global markets assess whether Russian oil will have a greater pivot to Asia in the future, international benchmark Brent crude rallied to the $112 a barrel level on Friday May 20 and Dubai crude rose. also climbed to $106 a barrel.
The US plan to apply the tariffs on Russia has also triggered additional volatilities in oil prices, as this is believed to drive up prices at the pump.
In the Philippine market, how the incoming administration will handle highly volatile oil prices remains a guessing game – not only its direct impact on consumers’ pockets but also its spiraling effect on the economy.
SUBSCRIBE TO THE DAILY NEWSLETTER
CLICK HERE TO REGISTER