Huge oil price rollback expected next week – DOE exec

MANILA, Philippines – A significant cut in domestic fuel prices is expected next week as international oil prices have declined by around US $20 per barrel as of Wednesday, ahead of the scheduled signing of a U.S.-Iran peace deal on Friday.

Department of Energy (DOE) Director Rino Abad, in an interview on Bagong Pilipinas Ngayon on Thursday, said oil prices are expected to decrease further in the coming days due to improvements in the situation in the Middle East.

READ: Oil prices down more than 4% after US-Iran deal to open Hormuz

“We expect a huge rollback next week. A huge chunk has been reduced from prices of petroleum products in the first three days of this week’s trading and this is not expected to be revised,” he said in Filipino.

This week, domestic fuel prices posted mixed movements, with diesel prices cut by around P3 per liter and kerosene by around P0.50 per liter, while gasoline prices increased by more than P1 per liter.

Abad denied claims that price increases were being implemented more frequently than rollbacks.

READ: Fuel price rollback of up to P5.71/liter set on June 16

He said oil price adjustments depended on several factors, primarily demand and supply conditions in relation to developments in the Middle East, as well as foreign exchange movements.

He stressed that fuel price adjustments were driven by market factors and not by the preferences of stakeholders. (PNA)

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