Oil companies rolled back their prices after last week’s hike.
Seaoil cut per liter prices by P0.35 on gasoline, P0.10 on diesel and P0.30 on kerosene.
Phoenix Petroleum, PTT and Jetti adjusted per liter prices downward by P0.35 on gasoline and by P0.10 on diesel.
Today’s adjustments were mainly caused by the US Federal Reserve’s announcement that it expects more interest rate hikes this year which worried fuel markets over its effects on global petroleum demand.
Data from the Department of Energy (DOE) as of June 13 showed Manila price per liter of gasoline (RON95) stood at P61.50, diesel at P54.65 and kerosene at P67.68.
DOE data also showed year-to-date adjustments amounted to a total net decrease of P3.95 per liter for diesel and P6.05 per liter for kerosene and a net increase of P6.70 per liter for gasoline.
Reuters reported that as of Friday last week, Brent crude settled at $76.61 a barrel as US West Texas Intermediate crude ended at $71.78 per barrel.
The same report said the US Federal Reserve left interest rates unchanged. It, however,cited economic projections which said borrowing costs are possible to go up by another half percentage point by the end of the year “as it reacts to a stronger-than-expected economy and a slower decline in inflation.”
Higher interest rates strengthen the US dollar which in turn makes commodities denominated in the currency more expensive for holders of other currencies.
Experts said the drop in this week’s local petroleum prices could have been higher if not for higher Chinese demand for fuel as well as the continuing effect of the Organization of the Petroleum Exporting Countries and its allies’ decision to limit combined oil production to 40.463 million barrels per day for the entire 2024. -Jed Macapagal
