Mixed adjustments in fuel pump prices

Updated May 5, 2020, 8:48 AM By Myrna M. Velasco
https://business.mb.com.ph/2020/05/04/mixed-adjustments-in-fuel-pump-prices/

Motorists will be experiencing mixed adjustments in pump prices this week as the price of gasoline will be on an increase of ₱0.75 per liter; while diesel will be on a marginal rollback of ₱0.10 per liter.

Kerosene, which is another essential commodity for households and key industries, will also be on a rollback of ₱0.60 per liter.

As of this writing, the oil companies that already sent notices on their price movements include Pilipinas Shell Petroleum Corporation, Seaoil, PetroGazz, Chevron, PTT Philippines and Cleanfuel; while the rest of the industry players are anticipated to follow.

For the past two months, Filipino consumers were not exactly benefitting much from cheaper prices at domestic pumps because of the enforcement of enhanced community quarantines (ECQs) in various parts of the country because of the unabated spread of the coronavirus-triggered pandemic.

By mid-May, there are expectations that quarantine policies may finally be eased and this could finally propel re-operation of the transport sector – which could then boost consumption of oil commodities.

The industry is heavily pummeled and this early, the Department of Energy (DOE) is already sounding off concerns that this may subsequently imperil expected flow of investments in the country’s oil and gas sector – primarily in the upstream sector.

The rock bottom prices regime, according to Energy Secretary Alfonso G. Cusi, may warrant re-assessment on the part of investors and they may rather take the option of holding back capital infusion in the sector.

“Because of the low price of oil, these exploration companies will again take time to think and see their options,” the energy chief stressed.

As of Friday trading, Dubai crude, which is the benchmark for Asian oil markets, was still at a low level of US$20 per barrel; while North American market’s WTI crude was still at a bargain base of US$18 per barrel. International pricing reference Brent crude was at US$ $25 to US$26 per barrel, still considerably on a nosedive if compared to industry expectations.

The restricted movement of people globally triggered the plunge in oil consumption that correspondingly resulted in crashing fuel commodity prices.

With prospects that many country-lockdowns will be relaxed or lifted soon, the oil industry is anticipating recovery in the second half, that in turn may also lift sagging prices and could re-invigorate investments in the sector.