Fuel prices posted a notable reduction Monday following last week’s sharp increase as retailers respond to easing global market pressure with adjustments of their own.
Seaoil and Caltex adopted price cuts of P0.85 per liter on gasoline, P0.75 on diesel, and P0.90 on kerosene. Retailers Jetti and PTT adjusted their gasoline prices lower by P0.85 per liter and diesel by P0.75 per liter.
The price rollback is largely attributed to weakness in global fuel demand, particularly from China, the world’s largest importer of crude oil. Reuters data show China oil refiners processing 4.6 percent less crude in October compared to the same period last year, citing plant closures and lower operating rates at smaller independent refineries. Additionally, a slowdown in China factory output and persistent issues at its property sector further dampened demand expectations.
The market is also factoring in a potential slowdown in U.S. interest rate cuts. Analysts warn that should the U.S. Federal Reserve reduce the pace of monetary easing, this will impact on economic growth and, consequently, fuel consumption.
According to the Department of Energy (DOE), the price of gasoline (RON91) in Manila as of 5 November average P57.50 per liter, diesel at P55.15 and kerosene at P71.66. Year-to-date adjustments show a net increase of P8.65 per liter for gasoline and P7.30 for diesel although kerosene has seen a decrease of P2.60 per liter.
In global markets, crude oil prices also softened, with U.S. West Texas Intermediate (WTI) futures closing at USD67.02 per barrel and Brent crude at USD71.04 as of last Friday.
