There’s more good news for the coming week in the meantime, as motorists can expect another rollback in the prices of fuel at the pumps.
Expect a considerable price reduction at the pumps by next week
On its Facebook post, fuel price monitoring watchdog PH Fuel Watch announced that diesel will be cheaper by as much as Php 4.50 per liter. Meanwhile, gasoline prices will also backtrack by Php 4.40 for every liter in the tank.
PH Fuel Watch says that the actual rates will still vary depending on market trends. The estimates were based on the Mean of Platts Singapore (MOPS), which is the pricing benchmark used for petroleum products sold in Asia.
World market prices for Brent crude, used as the standard for over 75 percent of oil traded globally, have reportedly dropped in recent days. As of July 8, Brent is trading at $105 (Php 5,864.83) per barrel, from an average of $116.3 (Php 6,496.34) the previous week.
Sea-borne Brent crude has seen prices go down in recent days
The price dip was attributable to several developments overseas. Among these is the increase in interest rates implemented by various countries to combat inflation, as reported by the Department of Energy’s Oil Industry Management Bureau (DOE-OIMB).
International currencies had taken a beating when the U.S. raised interest rates, which had the effect of strengthening the dollar and increasing purchase costs for oil. The Philippine peso closed at 55.67 against the dollar Wednesday, its weakest in almost 17 years.
Another factor in oil prices going down is the reduced demand from China, as the country has implemented lockdowns anew due to a COVID-19 resurgence. A total of 473 additional cases were reported as of July 2, interrupting the country’s momentum after more than a month of prior COVID-related restrictions.
The world's wealthiest nations agreed to study placing a price cap on Russian oil exports
A third reason cited for the oil price retreat is the agreement between leaders of the world’s seven most advanced economies, collectively known as the G7, to consider putting a price cap on Russian oil. Western countries have reportedly been frustrated that their embargoes on Russian crude exports drove global oil prices upward, contributing to runaway inflation.
UPDATE: Reports now state that diesel prices could go down by as much as P6.50 per liter. Meanwhile, gasoline prices could decrease by up to P5.90 per liter. GMA News cites DOE-OIMB Director Rino Abad as saying that there will be a big-time fuel price rollback next week.
Watch out for more fuel price movements at Philkotse.com.