Big setback in pump prices next week

Prices at domestic pumps will experience a big setback next week on a scale of P1.50 to P1.60 per liter for diesel products, as calculated by industry players.

For gasoline, the anticipated reduction will be from P0.95 to P1.15 per liter; while kerosene prices will drop from P1.40 to P1.50 per liter.

This batch of price cuts will be the strongest yet, given that cost movements have been slightly oscillating in the last two months. This will be a great comfort to the pockets of consumers, especially since many are saving for more considerable expenses for the holiday season.

The oil companies are anticipated to implement the price cuts on Tuesday (September 15), in accordance with the weekly monitoring of the adjustments they have been applying in the liberalized oil market.

The huge price drop came after a massive drop in world oil prices in recent trading days, with international benchmark Brent crude falling to the level of $ 39 per barrel from a stronger $ 43 per barrel a year ago. week.

Dubai crude, which remains a price benchmark for the Asian market, also softened to $ 40 a barrel after surpassing $ 45 a barrel in recent weeks.

Global experts noted that the drop in international prices was partly due to anticipations that the Organization of the Petroleum Exporting Countries (OPEC) and its Russian-led allied producers may already begin to relax previously imposed production quotas.

In the Asian regional market, according to last week’s monitoring by the Department of Energy (DOE), demand remained lackluster despite a well-supplied market; And that was mainly attributed to the persistent slowdown in demand for transportation fuels due to social distancing restrictions.

Global global demand for petroleum raw materials is also projected to gradually recover, with many observers and industry experts seeing that this phenomenon will continue into next year until 2022, as a definitive end to how and when is not yet in sight. the pandemic will end.

Similarly, market watchers are keeping a close eye on the upcoming elections in the United States, as it is heralded that a victory for the Democrats “could bring some of the sanctioned barrels, from Iran and Venezuela, to market faster than expected”.

When that happens, as noted, “this will make Saudi Arabia’s market management task even more challenging in 2021.” By next year, given that most economies will be on the road to economic recovery, the world is expected to rely heavily on OPEC supply, although care must be taken that geopolitical risks could disrupt fundamentals. From the market.