New diesel price cut expected next week
The prices of diesel in Metro Manila could drop to P70 to P90 per liter next week, as local fuel retailers are seen implementing a fresh round of rollbacks amid the progress in peace talks in the Middle East.
Based on the trading at the world market, an industry source said on Saturday that diesel may have a rollback of P7 to P9 per liter on May 12. Gasoline prices, however, may go up by P1 to P3 per liter.
Estimates from the Department of Energy (DOE) also showed a potential P9 price decrease for diesel and P12 for kerosene.
Gasoline prices, according to the DOE, may inch up by just P1.60 to P1.70 per liter.
If the P9 per liter rollback will be imposed for diesel, regular diesel products will range between P70.62 and P93.16 per liter in the capital region. Premium diesel, on the other hand, will decrease to P75.76 to P98.48 per liter.
Oil firms are scheduled to make announcements for their official price adjustments on Monday.
The DOE, following the declaration of the national state of energy emergency, can now impose limits on price increases, as well as dictate the minimum rollbacks in petroleum products.
Rino Abad, DOE director of Oil Industry Management Bureau, said in a radio interview Friday that diesel prices have been bouncing back to their normal market-based prices, before the petroleum product was significantly impacted by the Middle East war that started on Feb. 28.
Significant drop
“We are feeling the significant drop [in diesel prices],” he said.
The upward price forecast for gasoline, meanwhile, was buoyed by a possible supply tightness due to seasonal demand.
After a series of price increases that had resulted in diesel prices skyrocketing to up to P170 per liter in Metro Manila gas stations, retailers implemented for the first time a double-digit rollback in diesel, reaching about P21 per liter last April 14. This was followed by two more consecutive weeks of rollbacks.
However, oil firms again imposed on May 5 an increase of up to P2.66 and P2.21 per liter for diesel and gasoline, respectively.
Diesel products are used by buses, trucks, jeepneys and fishing boats. Machines used in agriculture also rely on that fuel. Gasoline, meanwhile, is used for private cars, motorcycles, tricycles and light utility vehicles.
