Local retailers have implemented mixed adjustments to petroleum fuel prices following a brief increase last week. Seaoil and Caltex have cut gasoline prices by P0.10 per liter while raising diesel prices by P0.75 and kerosene by P0.50 per liter. Jetti has mirrored these adjustments, lowering its gasoline by P0.10 per liter and increasing diesel by P0.75 per liter.
The recent price fluctuations are largely attributed to escalating tensions in the Middle East and record oil production levels in the United States. As of October 29, the Department of Energy (DOE) reported that the price per liter of gasoline (RON91) in Manila averaged P57.60, diesel at P53.90, and kerosene at P71.21.
Year-to-date adjustments show a net increase of P8.75 per liter for gasoline and P6.55 for diesel, while kerosene has seen a net decrease of P3.10 per liter. Data from Reuters indicate that Brent crude futures settled at $73.10 a barrel, with US West Texas Intermediate crude at $69.49.
The geopolitical landscape is also impacting prices, with rising fear over Iran’s potential military actions against Israel from Iraq. Since early this year, Iran and Israel have engaged in a series of retaliatory attacks. Iran, a member of OPEC, produced approximately 4 million barrels per day last year, according to the US Energy Information Administration (EIA).
Additionally, expectations are building that OPEC and its allies may postpone plans to increase oil production scheduled for December due to ongoing concerns about global demand amidst rising supply from alternative sources. However, the market remains tempered as US oil drillers reported record production levels of 13.5 million barrels per day last week.
