MANILA, Philippines - Consumers are expected to get a holiday break from oil companies after a Department of Energy (DOE) official announced that a gasoline price increase is not expected during the Holy Week.
Several oil companies had earlier reduced prices of liquefied petroleum gas (LPG), both for automotive and household consumption.
“Diesel should not increase,” said Zenaida Monsada, director of the Oil Industry Management of the DOE.
Monsada said for gasoline, a possible increase would be very insignificant and the oil firms are not expected to adjust prices.
Many people will be traveling to the provinces to take a long vacation and observe the Lenten season.
The price of Dubai crude, the benchmark for Asia, hit $122.90 per barrel on March 26 before easing to $120.40 per barrel on March 30.
“Prices softened because of talks by Organization for Economic Cooperation and Development (OECD) or the countries that are big consumers of oil,” Monsada said.
Monsada said the OECD countries are planning to release reserve oil to prevent a disruption ahead of the European Union’s embargo on crude imports from Iran that will start in July.
The embargo will be imposed to protest Iran’s controversial nuclear program that is allegedly intended to produce nuclear weapons.
Since the start of the year, oil prices have increased 10 times as against three price reductions.
As of March 27, net increase for gasoline and diesel stood at P6.55 per liter and P3.80 per liter, respectively, data from the DOE showed.
Monsada said oil companies implemented a rollback in LPG prices.
On April 1, Monsada said Petron cut prices of LPG by P9.52 per kilogram, Liquigaz by P9 per kg., Pryce Gases by P5.50 per kg. and Petronas Gas by P8.51 per kg. Total Philippines yesterday reduced prices by P9.52 per kg.