Updated
By Myrna Velasco
Motorists, primarily
the public transport sector that rely heavily on diesel, will be benefitting
from a P1.10 per liter rollback in the price of the petroleum product this
week.
For gasoline, the price
reduction will be at a leaner P0.50 per liter for this week’s cost adjustments,
based on the advisory of the oil companies.
The prime mover of this
fresh round of price rollbacks had been Phoenix Petroleum Philippines Inc., the
oil company of flourishing business magnate Dennis Uy, which implemented the
price rollbacks effective 2 p.m. on Saturday (August 10).
The price trends set by Phoenix Petroleum that will immediately be followed by
Clean Fuel, which will have the rollbacks reflected on its pumps starting 4
p.m. on Sunday, August 11).
The rest of the
industry players are anticipated to follow the dictates of market forces, with
a majority expected to enforce price reductions consistent with their Tuesday routine
– or by August 13.
The Department of
Energy (DOE) indicated that there was a considerable downswing in prices in the
world market; hence, that is now warranting the price declines at Philippine
pumps.
The Dubai crude in
particular, which is the pricing benchmark for Asian refiners, had softened to
the level of $55 per barrel in recent trading days compared to the higher pitch
of $59 to $60 per barrel in the past weeks.
Global market analysts
have been noting the oil industry’s incessant plunge into the “bear territory”
with no definitive green shoots of stable recovery yet despite commitment of
oil producers to stick to the output quota that they had agreed upon.
Beyond the production freeze deal that the Organization of the Petroleum
Exporting Countries (OPEC) had reached with its Russian-led counterparts, the
international oil market still deals with bigger blows such as the escalating
trade war between the United States and China, and the relentless strike of
geopolitical factors affecting supply-demand dynamics in the industry.
There are also worries
of global economic slowdown that could then slump demand growth, hence, oil
prices are seen plummeting further. And while that would be favorable for
consumers’ pockets, this could strain investments in oil gas exploration and
developments – which in the long term, could jolt a fresh round of crisis in
the industry.
On last week’s
softening of prices in the world market, it will be positive news for oil
import-dependent market like the Philippines given the series of rollbacks that
its consumers will have to enjoy in next week’s driving juncture.
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