BUSINESS
Advocates Philippines
Oil Price Reduction Expected Tomorrow; Transport Group Calls For Investigation
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Consumers may be in for a reprieve as prices of petroleum products are anticipated to decrease starting tomorrow September 26, 2023.
The rollback comes as a response to market dynamics, which have seen kerosene prices dropping by 0.50 per liter, while both gasoline and diesel are expected to dip by 0.20 per liter.
Meanwhile, the Philippine National Confederation of Transport Cooperative (PASANG MASDA) is calling for a comprehensive investigation into the pricing mechanisms of petroleum products.
PASANG MASDA National President Obert Martin expressed his concern, demanding answers from the Department of Energy (DOE) regarding the significant drop in diesel prices.
"Why is this happening? This department should conduct a thorough investigation since they control the prices. I need an explanation from Director Abad regarding this unusually low diesel rollback," said Obet Martin.
In response, DOE Director Rino Abad highlighted the intricacies of the international oil market, stating, "There is saturation of effects because if buyers cannot handle the current prices, they either reduce their demand slightly or negotiate for lower prices. At this point in time, we consistently observe these dynamics. Last week, prices already started to decline. So, any of the factors I mentioned could be pushing the prices down, but it's always a negotiation. In the international market, it's a daily buy-and-sell, and no one can predict the daily price discovery."
While consumers may find some relief in the short term, the DOE emphasized that petroleum production will remain insufficient until December, maintaining that the pump prices will not return to the $77 pork barrel levels seen previously.
The current pump prices stand at around 57 pesos, with gasoline reaching 72-73 pesos.
The rollback comes as a response to market dynamics, which have seen kerosene prices dropping by 0.50 per liter, while both gasoline and diesel are expected to dip by 0.20 per liter.
Meanwhile, the Philippine National Confederation of Transport Cooperative (PASANG MASDA) is calling for a comprehensive investigation into the pricing mechanisms of petroleum products.
PASANG MASDA National President Obert Martin expressed his concern, demanding answers from the Department of Energy (DOE) regarding the significant drop in diesel prices.
"Why is this happening? This department should conduct a thorough investigation since they control the prices. I need an explanation from Director Abad regarding this unusually low diesel rollback," said Obet Martin.
In response, DOE Director Rino Abad highlighted the intricacies of the international oil market, stating, "There is saturation of effects because if buyers cannot handle the current prices, they either reduce their demand slightly or negotiate for lower prices. At this point in time, we consistently observe these dynamics. Last week, prices already started to decline. So, any of the factors I mentioned could be pushing the prices down, but it's always a negotiation. In the international market, it's a daily buy-and-sell, and no one can predict the daily price discovery."
While consumers may find some relief in the short term, the DOE emphasized that petroleum production will remain insufficient until December, maintaining that the pump prices will not return to the $77 pork barrel levels seen previously.
The current pump prices stand at around 57 pesos, with gasoline reaching 72-73 pesos.
Sep 25, 2023
