The upward streak of oil prices might be coming to a temporary end as the Department of Energy (DOE) announced the likelihood of a rollback by Tuesday, March 22. This will be the first time this year that fuel prices will go down, after 11 consecutive weeks of increases.
Energy Secretary Alfonso Cusi said world oil prices have dropped due to international developments
In a televised Malacañang briefing with President Rodrigo Duterte Wednesday, Energy Secretary Alfonso Cusi hinted that a big-time price reduction may be implemented. “Next week, we expect the price of oil to drop if the market price continues to fall,” he said.
According to Cusi, oil prices have reached $104.79 per barrel during the past two trading days, lower than last week’s average of $122.61. “Kung magtutuloy po itong ganitong trend na umabot sa $104 or $105 per barrel, makaka-experience po tayo ng pagbaba ng presyo next week. Sa gasolina, puwede tayong bumaba ng mga Php 5 mahigit at sa diesel, puwede tayong bumaba ng Php 12 pataas,” he told President Duterte.
(If this trend of $104 to $105 per barrel continues, we could experience a price reduction next week. For gasoline, we could go down by more than Php 5 [per liter], and for diesel, it could be Php 12 or more)
Motorists have recently had to swallow a bitter pill with a major price increase on gasoline and diesel
The energy chief attributed the recent drop in global oil prices to lower demand in China, which is currently reimposing lockdowns due to a surge in COVID-19 cases. He adds that another factor is the ongoing talks between Ukraine and Russia, one of the world’s major oil and gas producers.
Russia invaded its East European neighbor in February 2022, triggering U.S.-led economic sanctions that have sent oil prices shooting upward in recent weeks.
According to the DOE’s previous projections, gasoline and diesel prices could reach Php 86.72 and Php 81.10 per liter, respectively, if the price of Dubai crude oil hits $140 per barrel. It warned that an international price of $200 per barrel could result in local pump prices of Php 100 per liter.
The DOE is appealing to the public to avoid panic buying
Motorists are still reeling from increases of Php 7.10 per liter increase for gasoline and Php 13.15 per liter for diesel which took effect on Tuesday, March 15. Cusi has issued an appeal to consumers to avoid panic buying at gasoline stations, earlier assuring the public that the country has sufficient inventory of fuel.
Keep an eye on fuel price movements with Philkotse.com.