Fuel Prices Expected to Drop Again Next Week
According to oil industry sources, fuel prices are anticipated to decrease for the second consecutive week, starting on Tuesday, May 7th. This news comes as a relief to motorists who have been grappling with high fuel costs in recent months.
Reduction in Gasoline and Diesel Prices
The decrease in fuel prices is expected to vary across different fuel types. Gasoline prices are predicted to go down by p0.20 to p0.45 per liter, while diesel prices are projected to be slashed by p0.50 to p0.70 per liter. These adjustments are based on information provided by industry players.
Decrease in Kerosene Prices
Furthermore, kerosene prices are also anticipated to decrease by p0.60 to p0.70 per liter. This reduction will come as welcome news to households that rely on kerosene for cooking and heating purposes.
It is important to note that fuel price movements are determined by the four-day trading of Mean of Platts (MOPS) Singapore, which serves as the pricing basis for refined goods in Southeast Asia. This international benchmark allows for a standardized method of determining fuel prices across the region.
The Department of Energy’s Oil Industry Management Bureau (DOE-OIMB) has shed light on the reasons behind the expected decrease in fuel prices. One significant factor is the anticipated ceasefire between Gaza and Israel, which has contributed to a more stable geopolitical environment. Additionally, other global oil movements have also played a role in the expected price adjustments.
DOE-OIMB Director Rodela Romero stated, “Based on the four-day MOPS trading, we are expecting a rollback in domestic pump prices next week.” She further explained that these price movements are influenced by recent international geopolitical developments, such as the expectations of an Israel-Gaza ceasefire, uncertainties surrounding the US interest rate reduction, and the rising oil inventory of the US.
Looking back at recent price adjustments, local oil firms implemented decreases in gasoline prices by p0.25 per liter, diesel prices by p0.45 per liter, and kerosene prices by p0.90 per liter as of April 30, 2024. These reductions aimed to alleviate the burden on consumers and provide some relief from high fuel costs.
It is worth noting that fuel prices are subject to various factors, including global oil market dynamics, geopolitical events, and local taxes and regulations. Therefore, it is essential for consumers to stay informed about the latest developments in the oil industry to better manage their expenses.
Source: The Manila Times
