Fuel prices to stay on downtick

FILE PHOTO: A tricycle driver searches his pocket for bills and coins to pay for fuel at a gasoline station on E. Rodriguez Avenue in Quezon City. INQUIRER/NIÑO JESUS ORBETA

MANILA, Philippines — Oil companies are expected to reduce local diesel and gasoline prices for the third straight week but the projected decrease is not as significant as in the past weeks, according to industry sources.

Unioil said the price of diesel should go down by P1.80 to P2 per liter and gasoline by 30 to 50 centavos per liter.

An industry source pegged the cost of diesel to decline by P1.90 to P2.20 per liter while that of gasoline is seen to slightly drop by 30 to 60 centavos per liter.

The source provided the estimates based on the average Mean of Platts Singapore (MOPS) trading from July 18 to July 22.

MOPS is the daily average of all trading transactions between buyers and sellers of refined petroleum products. This regional pricing benchmark is summarized by Singapore-based market wire service Standard and Poor’s Platts.

Rino Abad, bureau director of the Department of Energy’s Oil Industry Management, said in a radio interview, that the European Central Bank’s (ECB) announcement to hike interest rates tempered the increase in global crude prices.

The ECB hiked interest rates by 50 basis points, a first since 2011, which exceeded market expectations.

Abad said last week that the rollback in domestic pump prices might continue if the US Federal Reserve aggressively hikes its rates during the July 26 to July 27 policy meeting, resulting in a “global action” since other central banks around the world are expected follow suit.

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