MANILA, Philippines — Consumers can expect lower pump prices this week after oil products sold lower in the global market last week, according to the top official of the Department of Energy.
This week's fuel price rollback is the first of its kind this year, as the country as been experiencing consecutive rounds of oil price hikes since the beginning of 2022.
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On Monday, domestic oil firm Seaoil Philippines announced a fuel price rollback. Starting tomorrow, it announced that it will reduce gas prices by P5.45 per liter, diesel by P11.45 per liter and kerosene by P8.55 per liter.
Two other oil companies — PTT Philippines and Cleanfuel — reported similar price rollbacks for their oil and diesel products.
DOE Secretary Alfonso Cusi on Monday attributed the pump price rollback to the lower average prices of gas, diesel and kerosene based on the Mean of Platts Singapore (MOPS), the pricing yardstick for many refined products in Southeast Asia.
"Last week, MOPS average price for gas was $120/barrel and diesel was $125/barrel compared to previous week $138 for gas and $157 for diesel. That’s the reason for the rollback of domestic price this week," Cusi told Philstar.com in an online exchange over Viber.
"It’s for the same reason [that] keri (kerosene) per barrel at MOPS went down from 144 to around 120," he added.
Energy Undersecretary Gerardo Erguiza noted several developments in the global market which have contributed to the lower pump prices which motorists and consumers will enjoy this week.
In an interview on the Laging Handa government briefing, Erguiza explained that China began another lockdown as the pandemic worsened in the area, halting its economic activities — which is why they used less oil.
"There was also an earthquake [in Japan] which caused them to run their two refineries which are now supplying to us. Recently, last week, there have been improved relations between Russia and other countries in resolving the [war] with Ukraine," he said in Filipino.
Asked if the oil prices will stabilize this week, Erguiza answered that they will wait until the end of the day to check on the global prices of crude oil.
Based on data collected from the announcements of oil firms since the start of the year, the price adjustments of oil products are as follows: P14.9 per liter for gasoline, P19.2 per liter for diesel and P16.35 per liter for kerosene.