Oil firms announce rollbacks for 2nd time this year

Angelica Y. Yang - Philstar.com

MANILA, Philippines — Consumers can expect lower fuel prices this week amid hopes of resolving fighting prompted by Russia's invasion of Ukraine and other developments affecting the global oil market, where the Philippines mainly gets its supply from.

This marks the second time this year that fuel prices went down. 

On Monday, two oil firms announced price rollbacks in their fuel products. In an advisory, Seaoil Philippines announced a price reduction for gas by P2.30 per liter, diesel by P1.85 per liter and kerosene at P1.65 per liter, effective Tuesday. 

Another oil company Cleanfuel announced similar adjustments for its diesel and gas products. 

"One reason for the rollback is the positive feedback that the negotiator reported on the possible resolution of the Russia-Ukraine conflict," Rodela Romero, assistant secretary of the Department of Energy's Oil Industry Management Bureau told Philstar.com in an online exchange on Monday. 

She explained that sentiments and speculations trigger oil price adjustments. 

Romero noted three more reasons for the fuel price decrease this week. These are:

A US move to consider releasing a total of 180 million barrels of oil from its Strategic Petroleum Reserve for the next six months by May.

 The lockdown in Shanghai in China amid the surge in COVID-19 cases.

Russia's announcement to scale down its military operations in Ukraine.

Gas, diesel and kerosene prices in the Philippines have been increasing since the start of the year due to tight supply, which was partly worsened by the invasion of Ukraine.

Earlier this year, the Philippine government announced that it will double its fuel subsidies to P6.1 billion for affected groups such as the transportation and agricultural sectors in a bid to help them cushion the impacts of the oil price hikes. 

Based on data collected from the announcements of oil firms since the start of the year, the price adjustments of oil products are as follows: P16 per liter for gasoline, P26 per liter for diesel and P24.1 per liter for kerosene.