Local oil players implemented the first rollback in prices this year after 11 straight weeks of hike, mainly attributed to China’s lower demand for fuel products due to re-imposition of pandemic lockdowns.
But the International Energy Administration (IEA) said relief in price hikes is only temporary.
The Department of Energy (DOE) as of March 17, average Manila price per liter of gasoline (RON95) stood at P76.65, diesel at P75.45 and kerosene at P74.96.
Petron, Caltex and Seaoil dropped per liter prices of gasoline by P5.45; diesel by P11.45 and; kerosene, P8.55.
Phoenix Petroleum, Clean Fuel and PTT adjusted per liter prices downward on gasoline by P5.45 and diesel, P11.45.
The DOE said as of March 15, year-to-date adjustments on petroleum products stood at a total net increase of P20.35 per liter for gasoline, P30.65 per liter for diesel and P21.90 per liter for kerosene.
Reuters reported that as of Friday last week, Brent crude futures settled at $107.93 a barrel as US West Texas Intermediate crude futures ended at $104.70 per barrel.
The report said peace talks between Russia and Ukraine continue but an agreement is yet to be reached despite signs of progress last week.
At the Laging Handa public briefing, DOE Unders ecretary Gerardo Erguiza Jr., said IEA based its declaration that this week’s price drop is temporary on Russia’s current inability to sell its oil production due to challenges in logistics which may contribute to the global supply shortage.
Erguiza added the IEA has warned European countries which were previously being supplied by Russian crude oil are now forced to source their needs from alternative sources.
The IEA has identified Russia as the world’s third largest oil producer behind the United States and Saudi Arabia.
Erguiza said the DOE for now can only monitor developments in global crude oil prices.
“We continue to ask the Congress for possible amendments in the Oil Deregulation Law as it is the basis for the pricing mechanisms followed by oil stations… The only thing we can do right now is to monitor and ask for an amendment (in the law) to include the unbundling of oil prices,” Erguiza said.
