Fuel prices likely to ease this week

MANILA, Philippines -  Local motorists can expect slightly cheaper fuel prices this week on the back of easing demand in the world market, an oil industry executive said.

“[Fuel prices are] going down again for gasoline and diesel, between 40 and 50 centavos [per liter],” Fernando Martinez, chairman emeritus of the Independent Philippine Petroleum Companies Association, said in a text message.

He said the rollback is attributed to “slack demand in the world market with regional refineries fully recovering production.”

However, another industry source said prices might not need to be adjusted next week.

“Very little movement week-on-week [in the international market]. Most likely there is no need to adjust pump prices,” the source said.

Last week, oil firms jacked up pump prices of premium gasoline by 30 centavos per liter and regular gasoline by 25 centavos per liter.

The companies cut prices by 30 centavos per liter for diesel while kerosene prices dropped 25 centavos per liter.

For this week, the source said global prices will remain volatile due to geopolitical factors.

Tensions are still high as Israel and the United States continue to pressure oil producer Iran to stop its nuclear ambitions.

Data from the Department of Energy (DOE) showed that since the start of the year, the net increase for gasoline and diesel hit P2.93 per liter and 52 centavos per liter, respectively.

Under Republic Act 8479 or the Downstream Oil Industry Deregulation Act of 1998, oil firms can set the prices of petroleum products based on market forces to encourage competition.

The deregulation law also prohibits the government from intervening or influencing the pricing schemes of the oil companies.

However, the government, through the Department of Energy (DOE), has the power to monitor prices.