Oil price rollback looms

July 28, 2022 0 Comments

Motorists and consumers are up for relief, albeit minimal, starting Tuesday due to anticipated slight cuts in the pump prices of petroleum products after several weeks of hefty increases.,Based on the oil trading in the past five days, oil company Unioil said it expects diesel prices to go down by around P2.80 to P2.90 per liter, while gasoline prices should have no price change to a rollback of P0.10 per liter. ,Oil companies announce price adjustments every Monday to be implemented on the following day’s morning. They adjust their prices every week based on the movement of the MOPS— the regional pricing benchmark adopted by the deregulated downstream oil sector.,Being a net importer of oil, importers and even the government cannot assure motorists of a continued oil price deduction because the country is directly affected by the volatility in the international market.,Department of Energy (DoE) data showed that as of 28 June, the commutative increase in gasoline stands at P30 per liter, diesel at P45.90 per liter, and kerosene at P39.75 per liter.,Before the new set of leaders took over, the Duterte administration-led Land Transportation Franchising and Regulatory Board (LTFRB) already committed to a faster release of the second batch of the P6,500 cash grant meant to cushion the impact of the oil price hike to transport workers.,“LTFRB is currently preparing all documentary requirements for the release of the second tranche. LTFRB assures the process of availment of the subsidy will be much faster for the second tranche,” former LTFRB Executive Director Maria Kristina E. Cassion told reporters last week. ,“All the cards have already been produced by LBP from the previous phases (for PUJ) and tranche one or other modes. Crediting to the account of the beneficiaries will be through a top-up method,” she said.,With a new administration in power, industry stakeholders are hoping that the high fuel prices will be tempered.,President Ferdinand Marcos Jr. had already signified his willingness to lower commodity prices. He said he preferred to slash the excise tax on fuel instead of pursuing his previous pronouncement to give out fuel subsidies.