3 days ago
Oil prices likely to increase on June 17, says DOE
Consumers should brace for another round of oil price hikes next week, with the Department of Energy (DOE) projecting an increase in the cost of fuel products based on early trading data.
In an interview, DOE Oil Industry Management Bureau Assistant Director Rodela Romero explained that global market trends point to an upward adjustment that would take effect on Tuesday, June 17.
'Sa ngayon po, nakikitang pataas ang direksyon ng presyo. Kung pagbabasehan ang first two days ng trading, posibleng tumaas ng less than P1 per liter,' Romero said in Bagong Pilipinas Ngayon, referring to the early week trading data from Mean of Platts Singapore, which serves as the pricing benchmark for the Asian region.
(As of now, the price trend appears to be going up. Based on the first two days of trading, there might be an increase of less than P1 per liter.)
The Energy official emphasized that the final price movement will still depend on the remaining days of trading: 'Yung magiging final adjustment kapag natapos ang hanggang Friday na trading... average ng price for the week ang binabase at ikinukumpara sa previous week.'
(The final adjustment will be determined after trading ends on Friday… the average price for the week is based and compared with the previous week.)
Global developments
Romero identified several global developments contributing to the anticipated price hike, including ongoing geopolitical tensions and market volatility.
'Ang adjustment ng increase ay attributed po una sa geopolitical factors—yung escalating conflict ng Russia at Ukraine at nuclear deal between US at Iran,' she said.
(The increase in prices is primarily due to geopolitical factors—such as the escalating conflict between Russia and Ukraine, and the nuclear deal between the US and Iran.)
Other possible factors include U.S. trade policies and declining commercial inventories.
'May trade talks ang US at China na inaasahang magtataas ng demand, at malaking pagbaba rin ng imbentaryo ng US ang isa sa mga dahilan,' she noted.
(There are trade talks between the US and China that are expected to boost demand, and the significant drop in U.S. commercial inventory are also reasons.)
Romero also explained that the peso-dollar exchange rate plays a key role in oil prices.
DOE measures
With rising prices a continuing concern, Romero reassured the public that the DOE has measures in place to protect consumers.
'Regular po ang compliance check namin sa standards on quantity at quality. Kapag bumili ka ng isang litro, isang litro talaga ang makukuha mo,' she said.
(We regularly conduct compliance checks on standards for quantity and quality. If you buy a liter, you should really get one liter.)
She also encouraged consumers to exercise the power of choice and compare prices among gas stations.
'Gamitin po nila ang power of choice—piliin ang gasolinahan mas mura ang bentahan. May mga lugar na may price war,' she added.
(Consumers should use their power of choice—choose gas stations that have cheaper prices. There are areas where there are price wars.)
Romero highlighted that oil companies sometimes offer discounts or promotions as part of their corporate social responsibility.
When asked if there are reports of abuse in pricing, Romero assured that the DOE is actively monitoring the situation.
'Nandito naman ang DOE. Meron tayong DOE-DOJ task force para masigurong walang abusong nangyayari despite the deregulated environment,' she said.
(The DOE is here. We have a DOE-Department of Justice task force to make sure there is no abuse happening despite the deregulated environment.)
If there are possible unfair trade practices, she advised the public to report such abuses to the Philippine Competition Commission.
Romero added that price mitigation programs are in place, in coordination with other government agencies like the Department of Agriculture and the Department of Transportation. These programs include subsidies for farmers, fisherfolk, and public transport drivers.
'Kami po ang nag-iisyu ng trigger certification kapag lumagpas sa $80 per barrel ang presyo ng crude (oil), para ma-activate ang mga mitigation efforts,' she explained.
(We issue the trigger certification when crude prices go beyond $80 per barrel, to activate these mitigation efforts.)
The DOE said it will continue to inspect oil facilities—from bulk terminals to retail stations—to ensure compliance with quality and quantity standards. —RF, GMA Integrated News
