Mixed price adjustments for oil products this week

Motorists can expect mixed movements in pump prices this week, with gasoline likely to become cheaper while diesel and kerosene prices are set to rise, according to the Department of Energy (DOE).

Data presented by the DOE’s Oil Industry Management Bureau on Monday showed that oil companies may reduce gasoline prices by as much as P1.75 per liter or implement an increase of up to 25 centavos per liter.

Diesel prices, on the other hand, are expected to increase by between P1.57 and P3.57 per liter, while kerosene may rise by P1.70 to P3.70 per liter. The figures represent the range of adjustments that oil companies may impose on pump prices beginning on Tuesday.

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Energy Secretary Sharon Garin said the latest movements suggest that volatility in the global oil market may be easing after weeks of uncertainty driven by geopolitical tensions in the Middle East.

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“The good news is the average price has already fallen below $80 per barrel,” Garin said during a media briefing.

She noted that the oil industry was beginning to stabilize, raising hopes that domestic fuel prices could gradually return to preconflict levels, although this may still take several weeks or months.

“I think the worst is over,” Garin said, adding that prices were now undergoing a period of adjustment as global markets calm down.

Ample inventory

Separate DOE data also showed that the country continues to have ample fuel inventories despite the recent market swings.

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As of July 3, the Philippines had a total expected fuel supply equivalent to 46.5 days of demand. Gasoline inventories stood at 43.72 days, while diesel stocks were sufficient for 43.81 days of consumption.

The country also had 177.5 days of kerosene supply, 84.93 days of jet fuel inventories, 36.45 days of fuel oil stocks and 42.28 days of liquefied petroleum gas supply. INQ

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