Oil firms asked to explain lower-than-calculated gasoline rollback

Myrna M. Velasco

The Department of Energy (DOE) is seeking explanation from the oil companies why they have just implemented P0.90 per liter rollback in gasoline prices, which is lower than the calculated P1.10 to P1.20 per liter based on cost swings of the Mean of Platts Singapore (MOPS), the adopted benchmark of the domestic oil industry,

According to Director Rino Abad of the DOE’s Oil Industry Management Bureau (DOE-OIMB), the department had so far verbally notified some oil companies; and asked them to explain the lower-than-expected price cut for gasoline products.

The oil firms also announced that the price of kerosene will have a slight reduction of P0.10 per liter; while diesel prices will not change this week.

As of press time, the industry players that already announced their price cuts include Pilipinas Shell Petroleum Corporation, Cleanfuel, Seaoil, PetroGazz, Chevron and PTT Philippines effective Tuesday (November 16); while their competitors are anticipated to follow.

The seesaw in prices at the domestic pumps are mainly attributed to the fluctuation of prices in the world market – and it had logged softening so far on last week’s trading outcomes.

After hitting an all-time of US$87 per barrel last month, international prices plunged to the level of US$82 per barrel for benchmark Brent crude, on prospects that demand may weaken due to relatively gradual economic recovery in many countries around the world.

In the case of the Philippines, mobility has already been eased; and economic activities may even broaden next week as Filipinos prep for the Christmas holidays.

With both leisure trips and work-related travels now hitting new peaks, sales at gasoline stations are also escalating, hence, demand for fuel commodities in the domestic market is seen to be on sustained uptick on the remaining weeks of the year.

Many businesses are likewise sorting out plans on ‘hybrid work arrangement’; and such entails that their employees will be going to their offices once or twice a week; while the ‘work-from-home’ system will still be enforced on other days.

After going through the strain of the ‘longest lockdown’ in the world because of the Covid-19 pandemic, Philippine government leaders are now opting for ‘return to normalcy’ as plans are already being laid down for further relaxation on mobility by next month.

That plan of the government is coming in as a ‘bit of good news’ to the oil companies because that will further reinforce their sales

Source: Manila Bulletin (https://mb.com.ph/2021/11/15/oil-firms-asked-to-explain-lower-than-calculated-gasoline-rollback/?utm_source=rss&utm_medium=rss&utm_campaign=oil-firms-asked-to-explain-lower-than-calculated-gasoline-rollback)