DOE Eyes Oil Price Rollback Next Week
The Department of Energy (DOE) announced that an oil price rollback is expected next week after weeks of fluctuating pump rates.
Fuel prices are expected to go down next week, giving drivers a bit of relief after weeks of fluctuating pump rates. According to the Energy Department, the expected rollback comes from the recent trading results in the international oil market.
Based on early estimates from the Mean of Platts Singapore, gasoline may drop by around P0.30 per liter, diesel by about P1.10, and kerosene by roughly P0.65.
These projected rollbacks reflect the downward trend in global oil prices, which has been influenced by ongoing peace efforts between Russia and Ukraine and the steady flow of oil supplies from major producers like OPEC, the United States, and Russia.
The International Energy Agency also reported a cut in its global oil demand forecast, noting that the market is seeing signs of oversupply. This development helped push down world prices, which in turn affects local fuel costs.
However, the DOE reminded the public that the projections are still subject to change, as other factors like tariffs, geopolitical tensions, and additional business costs may affect the final adjustments.
The current forecast is based only on trading data and does not yet include other operational premiums of oil companies.
Earlier this week, local fuel firms increased gasoline prices by PP0.30 per liter, reduced kerosene by P0.20, and kept diesel prices steady. This follows several consecutive weeks of price hikes, particularly for diesel and kerosene.
The DOE also noted that demand for petroleum products usually rises during the last quarter of the year due to colder weather in the northern hemisphere, which drives higher consumption of heating fuels.
Oil companies are expected to announce official price adjustments on Monday, which will take effect the next day.