For the first time in 11 weeks, oil companies are rolling back prices.
Caltex and Seaoil cut per liter prices by P0.20 on both gasoline and diesel and by P0.50 on kerosene.
Jetti, PTT and Phoenix Petroleum reduced per liter prices by P0.20 on both gasoline and diesel.
The 10 weeks of increases totaled P11.85 for gasoline, P16.55 for diesel and P15.45 for kerosene.
Today’s adjustments were mainly pushed by positive sentiments after the US Federal Reserve decided to leave interest rates unchanged and hinted of more rates increases this year.
Data from the Department of Energy (DOE) as of September 19 showed Manila price per liter of gasoline (RON95) stood at P77.40, diesel at P68.80 and kerosene at P83.26.
The same data also showed year-to-date adjustments now total to a net increase of P17.50 per liter for gasoline, P13.60 per liter for diesel and P9.94 per liter for kerosene.
Reuters reported that as of Friday last week, Brent crude futures settled at $93.27 a barrel while US West Texas Intermediate futures closed at $90.03 per barrel.
The report said further interest rate hikes in the US would result to slower economic growth and reduced oil demand.
Analysts said this week’s rollback could have been much higher if not for Russia’s move to temporarily ban exports of gasoline and diesel to most countries, a move that is expected to further tighten global supplies.
A report quoted the Royal Bank of Canada’s warning that Russia’s ban will “bring new uncertainty into an already tight global refined product supply picture and the prospect that the impacted countries will be seeking to bid up cargoes from alternative suppliers.”
Rino Abad, director of the DOE’s Oil Industry Management Bureau, said despite this week’s price rollback, the Organization of the Petroleum Exporting Countries and its allies are not going to backtrack on their production cut policy until the end of the year.
Abad said this means international price of crude oil will stay at the current level of around $90 per barrel.
Abad discounted the possibility of crude oil going back to $77 per barrel recorded in March prior to the implementation of this year’s new sets of production cu. – Jed Macapagal
