With global oil prices rising slightly, heavy domestic oil pump cost adjustments are again expected next week for this year’s 8th cycle.
Based on last week’s international trade results, it was estimated that petrol prices will increase by P0.95 to P1.05 per litre; diesel from P0.55 to P0.65 per litre; and kerosene prices will rise from P0.45 to P0.55 per litre.
Oil companies will implement the new round of price increases on Tuesday, February 22, based primarily on the price swing referenced on the Mean of Platts Singapore (MOPS), the pricing benchmark adopted by oil industry players. downstream deregulated country.
While news of a likely ‘Iranian nuclear deal’ has helped push prices down momentarily in recent days, sentiments have shifted amid lingering concerns over the outlook for under-production, global experts say. Organization of the Petroleum Exporting Countries (OPEC). prices continued on their astronomical peaks.
International benchmark Brent crude fell to US$92 a barrel on Thursday after hovering at US$95 a barrel; but by the end of the week it was still over US$93 a barrel. Dubai crude, which is the benchmark price for Asian markets, also maintained its rally above US$91 a barrel.
Year-to-date, a Department of Energy (DOE) monitoring report showed that prices at Philippine pumps had already seen net increases of 7.95 pula per liter for gasoline-based products ; P10.20 per liter for diesel; and 9.10 pula per liter for kerosene.
Despite the relentless rise in international prices, the government still does not seriously consider suspending excise taxes on gasoline and diesel products. Therefore, there is no short-term cost relief for consumers to fall back on.
Under the Tax Reform for Acceleration and Inclusion (TRAIN) Act, the suspension of excise duties on petroleum products will be applied if Dubai crude averages $80 a barrel or more in l space of a quarter. Thus, the recourse could be an automatic postponement. by April this year.
The shortage of oil supplies that can be injected into the markets by key producers, such as Saudi Arabia as well as Kuwait and the United Arab Emirates, has put extreme pressure on the markets; thus, the sustained rise in prices.
Just recently, the Paris-based International Energy Agency (IEA) joined the league of major importers, like India, in calling on Middle Eastern producers to bring more barrels of crude oil to markets. so that prices go down.
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