DOE Says Oil Price Rollback Expected Next Week
The Department of Energy has announced a possible oil price rollback next week based on recent global market trends.
Filipino motorists can look forward to lower fuel prices starting February 11, 2025 (Tuesday). Forecasts indicate that gasoline prices may remain the same or decrease by up to P0.30 per liter.
Meanwhile, diesel prices are expected to drop by P0.20 to P0.50 per liter, with kerosene possibly seeing a reduction of P0.10 to P0.25 per liter.
Several global factors are influencing these price movements. Saudi Aramco recently announced a price increase for Asian buyers due to strong demand from China and India, combined with supply disruptions from Russia caused by US sanctions.
In addition, the Organization of the Petroleum Exporting Countries (OPEC) reported lower production levels in January, particularly from Iran and Nigeria, which has impacted global oil prices. Changes in US trade policies, including the delay of tariffs on Canada and Mexico, have also contributed to price shifts.
Local fuel companies adjust prices weekly, typically announcing changes on Mondays and implementing them on Tuesdays.
The latest adjustments saw gasoline prices rise by P0.70 per liter, while diesel and kerosene prices dropped by P1.15 and P0.90 per liter, respectively. If the predicted rollback occurs, it will mark the fourth fuel price adjustment for 2025.
Industry experts, including Jetti Petroleum President Leo Bellas, expect diesel prices to decline by P0.20 to P0.40 per liter and gasoline by P0.05 to P0.25 per liter. Factors such as a weaker demand outlook in the US, increased crude oil stockpiles, and uncertainties surrounding US-China trade relations are driving these trends.
Higher Saudi crude prices for Asian buyers and potential supply disruptions from Iran due to sanctions have also contributed to market fluctuations.
As of January 28, 2025, total fuel price adjustments for the year show an overall increase of P2.65 per liter for gasoline, P4.80 per liter for diesel, and P3.80 per liter for kerosene.
The social media users expressed their reactions to the announcement:
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