Petron Corp. and Isla LPG announced yesterday a price rollback for liquefied petroleum gas (LPG) or cooking gas by as much as P1.75 per kilo.
Petron said in its advisory it will implement a P1.75 per kilo (VAT-inclusive) rollback in LPG prices effective 12:01 am on June 1.
“This reflects the international contract price of LPG for the month of June,” Petron said.
Meanwhile, Isla LPG which markets the Solane brand announced it is implanting a rollback of P1.64 per kg VAT inclusive effective at 6 am yesterday.
Department of Energy monitoring showed that LPG sold from P845 to P1,116 per 11-kilo tank in May.
This followed the announcement of DOE of another mixed oil price movement this week on continued volatility in the world oil market.
Department of Energy Oil Industry Management Bureau (OIMB) director Rodela Romero said gasoline is expected to increase by up to P0.40 per liter, diesel may have a rollback of P0.20 per liter or increase of P0.30 per liter while kerosene may not increase or will have a price cut of up to P0.10 per liter.
Romero attributed the mixed movement to several factors, with the potential new US sanctions on Russia overshadowing the anticipated OPEC+ production hike as reason for the oil price increase.
The easing US-EU tariff concerns and rising geopolitical tensions in oil producing countries also pushed up prices.
However, OPEC and its allies’ decision to increase production in July by 411,000 barrels per day and the economic slowdown, particularly in Asia, and shifting energy priorities in countries like India which contributed to the reduced demand forecasts mitigated the increase.
Jetti Leo Bellas said that while oil prices have weakened on fears of an oversupplied market on expectations that OPEC+ will further unwind production cuts and after Iran and the US delegations made progress in their talks, “concerns of tighter supply after the US barred the export of Venezuelan crude oil have pushed the benchmarks higher.”
“Prices also found support on possible new sanctions on Russia, decision by the US to extend the trade deal talks with the European Union, decline in US crude and fuels stockpiles, and the US court ruling on tariffs,” he said.
“Putting a lid on diesel and gasoline prices is the prospect of increasing supplies in the region as refinery maintenance season comes to an end. However, the expected increase in gasoline demand due to the start of summer driving season could offset the potential rise in supply,” he said.
On a year-to-date basis, gasoline has a net increase of P4.10 per liter, and diesel has a net increase of P3.60 per liter while kerosene has a net decrease of P2.45 per liter.
On May 27, gasoline prices went up by P0.10 per liter, while diesel and kerosene had a price rollback of P0.20 and P0.40 per liter, respectively.
