Oil Firms Expect Mixed Fuel Price Adjustment on Tuesday (October 31, 2023)
Oil firms eye a rollback on prices of diesel and kerosene while gasoline prices is expected to increase next week.
Oil sources said Filipino motorists can breathe a sigh of relief as the upcoming week may bring some price adjustments in the fuel market. Diesel and kerosene may go down but the price of gasoline may increase.
The Department of Energy’s Oil Industry Management Bureau Assistant Director, Rodela Romero, suggests that diesel prices could go down by P1.20 to P1.40 per liter while kerosene might be reduced by P1.00 to P1.20 per liter.
Meanwhile, gasoline prices may surge by up to P0.25 to P0.50 per liter based on data from Mean of Platts Singapore (MOPS) trading in the last four days.
The local oil industry relies on MOPS, which serves as the basis for pricing refined petroleum products in Southeast Asia.
Many factors are influencing these price changes, including a decline in crude oil prices despite ongoing geopolitical concerns. Diplomatic efforts to resolve Middle East conflicts, particularly between Israel and Hamas, have reduced supply disruption fears and geopolitical risk premiums.
Furthermore, the increasing value of the US currency harms oil prices. Because oil is normally priced in US dollars, a stronger dollar might make it more expensive for buyers using foreign currencies, resulting in lower demand and, as a result, lower prices.
“Oil is typically priced in US dollars, so when the dollar rises, it can make oil more expensive for buyers in other currencies, leading to lower demand and lower prices,” the DOE official said.
Read Also: Gas companies announce oil price hike on Tuesday (October 24, 2023)
Usually, Oil companies announce price adjustments every Monday and implement it on the following day. As of Tuesday, October 23, diesel prices increased by P1.30 per liter, while gasoline prices went up by P0.95 per liter. Kerosene prices also experienced an increase of P1.25 per liter.
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