Another fuel price rollback possible next week  

Following this week’s reduction in fuel prices, another rollback is expected next week which should be welcome news for motorists. 

Another fuel price rollback looms for next week

Fuel price watchdog PH Fuel Watch announced on its Facebook page that diesel prices are expected to be slashed by Php 1.39 per liter. Gasoline prices will also be reduced by Php 2.60 per liter. Actual prices will depend on world market trends, as well as the station and location. 

This is the third consecutive rollback for Philippine fuel prices this month. PH Fuel Watch notes that the price reductions result from a downward trend in trading for Brent crude, which is used as a major international benchmark for pricing. This led to the Mean of Platts Singapore (MOPS) to forecast a rollback across oil markets. 

As of this writing, Brent is trading at $100.1 (Php 5,638.63) per barrel, while another global benchmark, West Texas Intermediate (WTI), is at $96.50 (Php 5,435.84) per barrel. However, analysts warn that this downward spiral of oil prices is only temporary.

Experts say that the current downtrend in oil prices is temporary 

“A lot of this, especially for oil is going back to Russia. And I think you are going to see supply upended, if not at the end of the year, if not before,” said Neal Dingmann, managing director of energy research at Truist Financial. “I think that has the potential to cause oil prices to even spike higher than what we just saw a couple months ago.” 

He warns that fuel prices could rise by as much as 50 percent if the U.S. fails to secure an alternative source for Russian oil. Russia produces 7 million barrels of oil per day or seven percent of the world’s supply. 

OPEC cannot match Russia's daily output of 7 million barrels of oil 

Dingmann explains that the Organization of Petroleum Exporting Countries (OPEC) currently cannot match this capacity, projecting that crude oil prices could reach $150 (Php 8,452.20 at today’s rates) per barrel if the ban on Russian oil exports continues. 

The European Union has agreed on a partial ban on Russian oil imports beginning December 2022. Meanwhile, the Group of Seven (G7) alliance will study implementing a price cap on Russian oil prices. 

UPDATE: A report from GMA News cites an industry source as saying that diesel prices could roll back by Php 1.70 to Php 1.90 per liter, while gasoline prices could be cheaper by Php 4.70 to Php 4.90 per liter. 

Monitor movements in local fuel prices with Philkotse.com.