Local oil retailers rolled back prices for the third consecutive week.
Seaoil reduced per liter prices by P2.20 on gasoline, P2.70 on diesel and P2.55 on kerosene. PTT and Clean Fuel adjusted per liter prices downward by P2.20 on gasoline and by P2.70 on diesel.
Today’s adjustments were mainly attributed to trading fears caused by concerns of a possible banking crisis in the United States that is expected to slow down the economy and temper demand for fuel.
Data from the Department of Energy as of May 2 showed average Manila price per liter of gasoline (RON91) is at P59.85; diesel, P54.25 and; kerosene, P68.47. This brings year-to-date adjustments to a total net decrease of P4.35 per liter on diesel and P4.95 per liter on kerosene and a net increase of P6.05 per liter on gasoline.
Reuters reported that as of Friday last week, Brent crude closed at $75.30 a barrel while US West Texas Intermediate ended at $71.34 per barrel.
Analysts said US Treasury Secretary Janet Yellen’s statement that the American government could run out of money within a month pulled down global crude prices.
The report quoted analysts from Commerzbank as saying the crude price drop may be negated soon. This is because of an expected upward market correction in the coming weeks.
Some analysts also expect more supply cuts during the next meeting of the Organization of the Petroleum Exporting Countries in June. -Jed Macapagal
