Gasoline price up, rollback for diesel

The domestic prices of gasoline will increase sharply by P3.95 per liter this week, while diesel, the so-called “poor man’s fuel,” will be down for the second successive week by P2.30 per liter.,In separate advisories on Monday, local oil companies confirmed the price hike for gasoline and rollback for diesel. Effective today, 24 May, the firms also said kerosene prices will be slashed by P2.30 per liter.,Oil companies announce price adjustments every Monday to be implemented on the following day’s morning.,They adjust their prices every week based on the movement of the Mean of Platts Singapore— the regional pricing benchmark adopted by the deregulated downstream oil sector.,Being a net importer of oil, importers and even the government cannot assure motorists of a continued oil price deduction because the country is directly affected by the volatility in the international market.,Last week, oil companies cut diesel prices by P3.10 per liter, gasoline by P0.40 per liter, and kerosene by P2.10 per liter.,Data from the Department of Energy (DoE) as of 17 May showed that the year-to-date adjustments of fuel prices stood at a net increase of P31.40 per liter for diesel and P21.60 per liter for gasoline.,The energy department also noted that crude prices remained volatile last week amid a mixed fundamental picture and increasing hedging ratios in the financial sector.,Hurdles in implementing the Russian oil ban by European Union member countries have contributed to a steep decline in crude oil prices at the beginning of the week, on top of recession fears and demand losses in China.,The DoE said Asian gasoline market remained strong, with gasoline cracks staying at nearly $30 per barrel on average throughout the previous week despite moderating by $1.68 per barrel on a week to $29.85 per barrel on 12 May.,On the supply side, the agency noted that the Asia gasoline complex was supported by the expectations that China will keep reducing gasoline exports at least by June due to a lack of export quotas.