Significant reduction in oil prices expected for the following week

Motorists in the Philippines can expect a decrease in fuel prices next week, according to the Department of Energy (DOE).

DOE-Oil Industry Management Bureau assistant director Rodela Romero estimated that the pump price of gasoline could go down by P0.70 to P0.90 per liter. Meanwhile, diesel and kerosene prices may see rollbacks of P1.20 to P1.50 per liter.

Romero attributed the potential price decrease to the decision of OPEC+ to extend voluntary production cuts of 2.2 million barrels per day until the end of the year. She noted that this move was a response to concerns about weakening demand growth, high interest rates, and increased production from the United States.

Currently, OPEC+ is enforcing a total production cut of 5.86 million barrels daily. The DOE previously mentioned that oil prices could fluctuate weekly due to the balance of supply and demand in the global market.

Oil companies are expected to announce the final adjustments in prices on Monday, which will take effect the following day. Last week, gasoline prices were lowered by P0.90 per liter, while diesel and kerosene prices increased by P0.60 and P0.80, respectively.

Year-to-date, the net adjustments for gasoline and diesel prices are increases of P6.65 and P5.45 per liter, respectively. In contrast, the price of kerosene has seen a net decrease of P0.25 per liter.

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