DOE expects fuel rollbacks as high as P3 per liter next week

Angelica Y. Yang - Philstar.com
DOE expects fuel rollbacks as high as P3 per liter next week
Motorists queue as they wait to fill their vehicles in a gas station along Nangka J.P. Rizal in Marikina early Monday afternoon, June 20, 2022. Several petroleum companies announced another oil price increase, effective on Tuesday, June 21, 2022.
The STAR / Walter Bollozos

MANILA, Philippines — Consumers can expect to see rollbacks in gas, diesel and kerosene from July 5 to 11, according to estimates from the Department of Energy (DOE).

Diesel and kerosene are seen to decrease by P2 to P3 per liter starting next week, DOE Oil Industry Management Bureau Director Rino Abad told Philstar.com in an online message on Saturday.

Meanwhile, a liter of gas is expected to decrease by less than P1, he added. 

In a separate fuel forecast, oil company Unioil said gas may experience a rollback of up to P0.10 per liter beginning next week. 

"[The prices are] indicative of rollback next week due to the following major reasons: China lockdown [and] effect of various interest hikes all over the world which depresses economic activity and, ultimately, fuel demand," DOE's Abad said.

China's financial hub Shanghai implemented a two-month lockdown earlier this year to curb COVID-19 infections, but the city has been struggling to return to normal after several neighborhoods re-imposed restrictions, Aljazeera reported on June 25. 

In mid-June, the US Federal Reserve raised benchmark interest rates by 0.75 percentage points, the largest hike since 1994. Back home, the Bangko Sentral ng Pilipinas also recently raised overnight borrowing, lending and deposit rates by 25 basis points to 2.50%, 2% and 3%, respectively. 

Fuel rollbacks are a relief for consumers who had to deal with more expensive rates for the past four weeks due to constant price hikes. Since the start of 2022, fuel prices have been rising due to supply disruptions in the world market. The geopolitical war between large oil producer Russia and Ukraine further worsened the situation. 

The Philippines is heavily reliant on the world market for its oil requirements. 

Year-to-date adjustments show that people have to shell out P30 more per liter of gas, P45.9 for a liter of diesel; and P39.75 per liter of kerosene, based on price advisories. 

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