OIL firms will implement mixed price adjustments for petroleum products this week.
For diesel and kerosene prices, an increase of P0.75 per liter and P0.50 per liter, respectively, will take effect at 6 a.m. of Tuesday, July 11.
Gasoline prices, meanwhile, will be slashed by P0.20 per liter on the same day.
This was announced by Petron, Shell, Caltex, Seaoil, PTT, Phoenix, Total, and Unioil. Cleanfuel, meanwhile, will implement its price adjustment at 4:01 p.m.
Oil firms adjust their pump prices every week to reflect movements in the world oil market.
Last July 4, oil companies implemented a decrease of P0.70 per liter for both gasoline and diesel. Kerosene prices also went down by P0.85/liter. These price adjustments resulted in a year-to-date net decrease of P3.70/liter for diesel and P6.00/liter for kerosene. Gasoline, on the other hand, has a net increase of P5.85/liter.
Based on DOE monitoring during the first week of July, the week-on-week price of Dubai crude has decreased by around $1.30 per barrel (bbl). MOPS (Mean of Platts Singapore) gasoline also decreased by about $2.05/bbl, diesel by $1.80/bbl, and kerosene by $1.90/bbl.
The local oil industry uses MOPS as benchmark for pricing of local products. Before, the country uses Dubai crude. However, this translates to one to two months lag time in reflecting the cost of products as it entails three weeks of travel time and another week or two for refining the crude and transporting the products to the pump.
The shift to MOPS was undertaken to become more responsive to the movements in the international market and local demand for fuel products. Basing price of products on MOPS will only entail five days for importation travel time and transfer to the pumps.
According to the DOE, there is a roughly P1 per liter increase or decrease in domestic oil price for every $3 change in MOPS.
Image credits: Nonie Reyes