Updated
December 9, 2018, 12:13 AM By Myrna Velasco
With the upswing in
international prices, the good tidings on fuel price rollbacks ceased this
week, as the price of gasoline is anticipated to go up by P0.40 to P0.50 per
liter next week, based on the assessment of industry players.
A glut
on the market has led to oil prices falling by more than 30 percent in the
space of two months (AFP / MANILA BULLETIN)
Sources said the price
of diesel will unlikely move. However, if there is a rollback, it will be at a
very marginal P0.05 per liter. Or if there will be an increase it would be a
measely P0.10 per liter.
Kerosene, which is
another product used by many Filipino households, will have a price rollback
ranging from P0.25 to P0.35 per liter, oil firms have hinted. Movement at the
pumps are expected by Tuesday, December 11.
The oil companies said
they based their assessment on reference data at hand, the swing in Mean of
Platts of Singapore (MOPS) as of the four trading days last week.
As of the weekend, they
were re-evaluating the impact on prices as result of trading in the regional
market on Friday, December 7.
Somehow, domestic
consumers were able to enjoy two months of financial relief in their fuel
expenses – given the hefty price cuts that the oil companies had implemented in
eight straight weeks.
Pump prices in the
country are anchored on movements of prices in the world market. One benchmark
is the MOPS primarily for finished product importers; while refiners Petron
Corporation and Pilipinas Shell Petroleum Corporation are also taking a look at
the price twirl of crude commodities.
Output cutback
Price spikes
nevertheless reigned in the world market on Friday, following the cemented deal
between the Organization of the Petroleum Exporting Countries (OPEC) and its
ally-producers for an output cutback of 1.2 million barrels per day.
OPEC producers had
given thumbs up to 800,000 barrels per day production cutback; while Russia-led
producers in the alliance committed to reduce output by 400,000 barrels per
day.
This is a new round of
‘market rebalancing’ similar to what the Vienna alliance of OPEC and Russia had
done during the price crash toward the yearend of 2014.
It was noted that Iran
partly put a drag on the decision leading to the output snip, hence, it took
the relevant parties to reach only an agreement on Thursday, December 6.
OPEC agreement
In Vienna, OPEC members
and 10 other oil producing nations, including Russia, agreed Friday to cut
output by 1.2 million barrels a day in a bid to reverse falls in prices in
recent months, a report from the Agence France Presse (AFP) said.
Energy ministers
reached the deal – which takes effect from January 1 but has already sent
prices surging on oil markets – after two days of talks at OPEC headquarters in
Vienna.
“OPEC group countries
are contributing 800,000 barrels per day as a cut, and the non-OPEC (countries)
will be contributing 400,000 barrels per day,” Emirati Oil Minister Suhail
Mohamed al-Mazrouei said at a news conference.
OPEC and its partners,
which together account for around half of global output, met against the
backdrop of a glut in the market which had led to oil prices falling by more
than 30 percent in two months.
Mazrouei said that
three countries had been allowed exemptions from the agreement due to “special
circumstances.”
“Those countries are
Iran and Venezuela because of the sanctions and Libya because of the fact that
unfortunately they are on and off,” he added, alluding to the impact on Libyan
production of continuing conflict there. (With a report from AFP)
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