Motorists will gain financial relief at the pumps this week as the price of gasoline and diesel products will be on rollback by P0.70 per liter, based on the pricing adjustment advisories of the oil companies.
For kerosene products, the industry players similarly announced price cuts of P0.85 per liter and that had been anchored on the movement of prices in the world market.
As of this writing, the oil firms that already sent notices on their price reductions effective Tuesday (July 4) had been Shell Pilipinas Corporation, Seaoil, Cleanfuel, Chevron, Jetti and PetroGazz; while their competitor-firms are anticipated to follow.
Prior to this round of adjustment, domestic petroleum prices since the start of the year logged net decrease of P3.00 per liter for diesel and P5.15 per liter for kerosene; while gasoline prices had a net increase of P6.55 per liter.
The cost adjustments at the domestic pumps had been referenced on the Mean of Platts Singapore (MOPS), the pricing barometer adopted by the deregulated downstream oil industry.
Prices in the world market had been on downtrend last week, on lack on factors that could lift market sentiments versus portended global economic growth slowdown.
While mammoth oil consumer United States had reported decline on inventory, that did not come as enough succor to any upward price pressures on traded oil commodities last week.
As of Monday (July 3), spot trading prices for international benchmark Brent crude had been hovering at $75 per barrel scale, barely moving from its level last week.
Nevertheless, global oil markets have been looking forward to any potential declaration that the Organization of the Petroleum Exporting Countries (OPEC) may be coming up on their International Seminar that is slated this July 5-6.
There is no clear direction yet how prices would swing this week, but market watchers have not been expecting major developments that could jolt oil market fundamentals in the days ahead.
