Oil Price Rollbacks May Not Continue Next Week, Experts Says
The experts were saying that oil price rollbacks may not continue in the upcoming days due to very volatile oil price in the global market.
Regina Capital managing director Luis Limlingan said that another massive oil price rollback might not be possible in the coming days. He explained that the current geopolitical scene is a factor.
Bank of the Philippine Islands (BPI) economist Jun Neri claimed that oil prices will remain high as tension between Russia and Ukraine continue. Aside from Russia-Ukaraine war, the volatility of oil prices is one of the factor, according to Energy Undersecretary Gerardo Erquiza.
Erquiza said that the magnitude 7.4 earthquake in Japan and the surge of coronavirus disease in China may have contributed to the big-time pump price reduction this week.
“Ang China, nag-worsen ‘yung pandemic at nagkaroon ng mga lockdowns. So ‘yung mga economic activities sa China, medyo bumaba … Sa Japan, nagka-earthquake, tumakbo ‘yung dalawang refinery doon,” Erquiza said.
The Department of Energy (DOE) cannot predict the changes on pump prices due to oil deregulation in the country, according to Erquiz. He also said that DOE will continue to monitor the oil price hike to discover the reasons behind surging prices of petroleum products.
“Ang pwede naming gawin ho is talagang i-monitor po ang implementation na ito [oil price adjustment], at hiligan ng isang amendment sa batas na unbundling po ng presyo… gusto naming makita kung bakit ganoon ang presyo,” Erquiz added.
Last week, the House Committee on Energy approved the bill amending the oil deregulation law.
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