Oil Prices Expected to Rollback at the Start of 2024
Filipino consumers can expect slight relief in the new year as the prices of kerosene and diesel products are anticipated to decrease at the start of 2024. Based on calculations by industry players, kerosene prices are expected to decrease by P0.95 to P1.35 per liter, while diesel may see a moderate price decline of P0.25 to P0.65 per liter.
Gasoline prices are expected to remain steady or possibly see a rollback of P0.25 per liter. However, liquefied petroleum gas (LPG) prices are projected to rise by P3.25 to P3.75 per kilogram starting January 1, 2024, with an increase of P35.75 to P41.25 for the standard cylinder for the rest of the month.
While the calculated price cuts for kerosene, diesel, and gasoline on January 2 are based on the Mean of Platts Singapore (MOPS) index, actual price adjustments at domestic pumps may still change due to geopolitical risks impacting the shipment of petroleum commodities.
In 2023, oil price movements saw net increases of P12.60 per liter for gasoline, P5.65 per liter for diesel, and P1.24 per liter for kerosene, as reported by the Department of Energy. However, recent trading days have seen a softening of prices due to tamed demand, despite lingering geopolitical risks such as the recent assault of Houthi militants at the Red Sea, a strategic route for vessels delivering petroleum commodities.
The international benchmark Brent crude saw a $3.00 per barrel decline to $77 per barrel at the end of trading on December 29. Looking ahead to 2024, industry experts project that oil prices will likely remain mostly within the $80 per barrel range, with close attention on the decisions of the Organization of the Petroleum Exporting Countries (OPEC) and their potential impact on prices.
