Oil price adjustments are mixed this week.
This developed as the Department of Energy (DOE) has issued the guidelines on the increased biofuels blend.
Seaoil and Caltex reduced per liter prices on gasoline by P0.10 and raised per liter prices on diesel and kerosene by P0.25 and P0.30, respectively.
Clean Fuel, Jetti and PTT adjusted per liter prices upward on gasoline by P0.10 and downward on diesel by P0.25.
Today’s fuel price movements were mainly caused by the effects of good economic indicators in China and in the United States which are the two biggest global fuel consumers as well as the anticipation on the outcome of meeting on June 1 of the Organization of Petroleum Exporting Countries and its allies.
Data from the DOE as of May 14 showed Manila price per liter of gasoline (RON91) stood at P63.60, diesel at P56.25 and kerosene at P71.88.
DOE data also showed year-to-date adjustments as of the same date stood at a total net increase of P7.25 per liter for gasoline and P4.20 per liter for diesel and a net decrease of P1.65 per liter for kerosene.
Reuters reported that as of Friday last week, Brent settled at $83.98 a barrel while US West Texas Intermediate crude ended at $80.06 per barrel.
The report said another factors that affected current global crude prices is the expected lowering of US interest rates as it could soften the dollar and in turn, make dollar-denominated oil cheaper for buyers holding other currencies.
Meanwhile, the DOE in a department circular signed by Secretary Raphael Lotilla on May 7 said all diesel fuel sold in the country must contain biodiesel blend of 3 percent by October 1.
This will be raised to 4 percent by Oct. 1, 2025 and to 5 percent by Oct. 1, 2026.
At present, diesel products are blended 2 percent with biodiesel.
The circular said oil retailers may start to voluntary offer gasoline with 20 percent bioethanol blend but that the existing 10 percent bioethanol blend is still mandatory.
