Fuel price rollbacks seen after Democrat wave in US midterms

MANILA, Philippines — Rollbacks are expected for gasoline, diesel and kerosene next week as the price of fuel continues to drop in the world market.

Based on the three-day Mean of Platts Singapore trading, the following reductions are expected:

• Gasoline - P10.20/L
• Diesel - P3.50/L
• Kerosene - P3.60/L

Price declines were dampened in previous weeks by fears that the US may strike Iran. However, the Democratic party's gains in the American Senate and Congress at their midterm elections earlier this week countered these concerns, even after President Donald Trump ordered a strike on Iran's Qeshm Island.

The landslide victory allows the opposition to stop appointments, launch investigations and block legislation, including provisions that support Trump's war against Iran.

The Philippine peso also recovered to a P62:$1 trading level, closing at P62.97 on Thursday, November 5.

A higher exchange rate is linked to higher fuel prices because dollars are the currency used to purchase crude.

Higher fuel and transport costs pushed inflation to a three-year record high of 7.8% in October. 

The country remains on a tightening cycle to manage inflation, but the central bank maintains that its monetary policy at present is not intended to support a particular exchange rate.