Oil Companies Set to Impose Roll Back Fuel Prices on Tuesday (November 19, 2024)
Oil companies are expected to implement a rollback in fuel prices next week after a huge increase last week.
Starting Tuesday (November 19, 2024), Filipino motorists can expect a reduction in the cost of gasoline, diesel, and kerosene after a huge increase in fuel prices last week.
The Department of Energy (DOE) has projected price rollback between P0.70 and P1.00 per liter of gasoline, P0.65 to P0.95 per liter of diesel, and P0.70 to P0.80 per liter of kerosene.
The price reduction comes in response to weakening global oil demand, particularly in key markets like China and the United States, where fuel consumption has slowed. Experts have noted that this drop in demand has had a more huge effect on prices than the ongoing geopolitical tensions in the Middle East, which typically influence oil prices.
The decline in global fuel demand is further reflected in the oil industry’s shifting outlook. The Organization of the Petroleum Exporting Countries (OPEC+) recently lowered its oil demand forecast for the fourth time this year.
Meanwhile, the U.S. Energy Information Administration also revised its forecast for 2025 crude prices, citing the possibility of higher oil production around the world. These factors have all contributed to the expected price reduction.
However, the oil market remains unpredictable. Despite the weaker demand, fuel supply in some regions, particularly in Asia, is tight due to lower exports from China. This has kept oil prices from falling too drastically.
Last week, oil prices went up by as much as P2.10 per liter for diesel, P1.50 per liter for gasoline, and P1.20 per liter for kerosene.
Overall, diesel and gasoline have seen a huge price increase this year, with total hikes of P9.40 and P10.15 per liter, respectively. Kerosene, however, has experienced a slight drop of P3.80 per liter. Consumers can look forward to some relief next week.
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