WORLD OIL PRICES (January 3-7, 2022 trading days)
Dubai crude has increased week-on-week by almost US$1.50/bbl. Both MOPS gasoline and MOPS diesel have also increased: gasoline by around US$ 1.15 per barrel and diesel by about US$ 1.80 per barrel.
Reasons for the Price Adjustment1
- Crude prices started the new year on a bullish tone as the market sees limited impact on demand recovery from the omicron variant. Despite rising cases, the hospitalization and death count remain low, allowing countries to do away with demand sapping lockdowns. Signaling demand confidence, OPEC+, on Jan.4, confirmed an increase in its production by 400,000 b/d as earlier telegraphed to markets.
- The market sentiment on gasoline remained firm as the mobility indicators stayed above baseline levels. As of Jan. 4, the driving activity in Malaysia was recorded at 14.54% above baseline levels, while in India was 85.78% above baseline levels. In Australia it was 12.52% above baseline and in Indonesia 27.59% above baseline.
- The Asian gasoline complex is set for recovery as countries continue to live with virus amid higher vaccination rates and better control measures with Asian gasoline demand growing by 410,000 b/d year-on-year in 2022.
- Gasoil/diesel market got a boost from the sudden ban in coal exports by Indonesia as Asian utility producers could possibly switching to gasoil to cover the coal fired power generation shortfall.
FOREX: Philippine peso depreciated week-on-week against the US dollar by P0.61 to P51.14 from P50.54 in previous week.
Other recommended reference sites:
• http://www.aip.com.au/pricing
• http://www.indexmundi.com/commodities/?commodity=crude-oil-dubai
• https://www.quandl.com/data/ODA/POILDUB_USD-Dubai-Crude-Oil-Price
DOMESTIC OIL PRICES
Effective 11 January 2022, the oil companies implemented a price increase in domestic oil products. Gasoline has increased by P0.75 per liter, P1.00-1.10 per liter for diesel and kerosene by P0.90 per liter.
These resulted to the year-to-date adjustments to stand at a total net increase of P2.60/liter for gasoline, P3.50/liter for diesel and P2.75/liter for kerosene.
For the updated prevailing retail pump price, please browse this link: https://www.doe.gov.ph/price-monitoring-charts?q=retail-pump-prices-metro-manila.
For more information, call the
Department of Energy
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: https://www.doe.gov.ph
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1 Asia Pacific Weekly Recap by S & P Global