Fuel retailers cut pump prices for 1st time in 2022

FUEL RETAILERS on Tuesday implemented a rollback in the prices of gasoline, diesel and kerosene, ending 11 straight weeks of steadily rising pump prices.

The price of gasoline, diesel, and kerosene products were slashed by P5.45, P11.45, and P8.55 per liter, respectively, as Dubai crude oil prices dropped last week.

This is the first reduction in pump prices this year, but it was not enough to offset the accumulated increase of P20.35 per liter for gasoline, P30.65 for diesel, and P24.90 for kerosene as of last week.

Energy Secretary Alfonso G. Cusi said the rollback is due to the drop in average prices of petroleum products based on the Mean of Platts Singapore (MOPS), the pricing yardstick for many refined products in Southeast Asia, last week.

In a text message, Mr. Cusi said the average price of gasoline was $120 per barrel last week, down from $138 per barrel the previous week. The average price of diesel slipped to $125 per barrel from $157 per barrel previously.

During the Laging Handa press briefing on Monday, Energy Undersecretary Gerardo D. Erguiza, Jr. said crude oil prices fell due to concerns the lockdowns in China would lower demand and the progress in Russia-Ukraine talks.

Despite the decline in fuel prices, Mr. Cusi said the government will increase the P3-billion budget for fuel subsidies to P6.1 billion. — Marielle C. Lucenio