Oil companies rolled back the prices of all fuel products this week.
Seaoil and Caltex reduced per liter prices by P2 on gasoline, P0.50 on diesel and P0.85 on kerosene.
Clean Fuel and Jetti adjusted per liter prices downward by P2 on gasoline and P0.50 on diesel.
This is the third consecutive week of price drop on gasoline and the fourth straight week of decline on diesel and on kerosene.
Today’s fuel price decreases were mainly caused by the effects of the United States central bank’s hints interest rates will continue to be higher which is expected to temper demand from the world’s largest crude oil consumer.
Data from the Department of Energy (DOE) as of May 7 showed Manila price per liter of gasoline (RON91) stood at P67.30, diesel at P59.30 and kerosene at P72.74.
DOE data also showed year-to-date adjustments as of the same date stood at a total net increase of P9.25 per liter for gasoline and P4.70 per liter for diesel but a net decrease of P0.80 per liter for kerosene.
Reuters reported that as of Friday last week, Brent crude futures settled at $82.79 per barrel. US West Texas Intermediate crude ended at $78.26 a barrel.
The report quoted an official of the Dallas Federal Reserve as saying it was unclear whether or not monetary policy is tight enough to bring down inflation to the US central bank’s 2 percent goal.
Analysts said higher interest rates typically slow economic activity and weaken oil demand which in turn pull down crude prices.
The report added because of this, the US dollar’s performance improved which made dollar denominated commodities more expensive for buyers using other currencies.
Another factor cited by experts on this week’s petroleum price drops is the rising US fuel inventories.
