The Department of Energy (DOE) has projected a rollback in fuel prices for next week, according to a statement released on Friday. The anticipated adjustments come in response to recent market trends and global events.
Estimated Price Reductions
Rodela Romero, Director III of the DOE’s Oil Industry Management Bureau, provided an update on the expected changes based on recent trading data:
Gasoline: Expected decrease of PHP 0.70 to PHP 0.90 per liter
Diesel and Kerosene: Expected decrease of PHP 1.00 to PHP 1.15 per liter
Factors Influencing Price Drop
Romero attributed the anticipated price reductions to several key factors:
Weak China Inflation Data: The drop in crude oil prices is partly due to weak inflation data from China, which reflects low consumer confidence. This has led to expectations of stimulus measures from Beijing aimed at boosting demand.
Hurricane Beryl’s Impact: Despite some shipping delays and platform evacuations, Hurricane Beryl has caused relatively minimal physical damage. This has enabled the U.S. to recover its oil production levels, countering a larger-than-expected weekly decline in U.S. crude inventories.
Dollar Strength: The strength of the dollar has also played a role in reducing oil prices. However, as the week progresses, oil markets are expected to refocus on fundamental factors and geopolitical issues.
Upcoming Adjustments
Fuel companies typically announce price adjustments every Monday, with changes taking effect the following day.
Earlier this week, oil companies increased the prices of gasoline, diesel, and kerosene by PHP 1.60, PHP 0.65, and PHP 0.60 per liter, respectively. The upcoming rollback is set to provide some relief to consumers following these recent hikes.
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