Energy official says DOE expects fourth week of diesel, kerosene price rollbacks
A Department of Energy (DOE) official said on Friday it expects a fourth week of rollbacks in the prices of diesel and kerosene.
Rino Abad, DOE, Oil Industry Management Bureau (OIMB) director, said based on the past four trading days there is a '' high indication'' that there will be a rollback in the prices of kerosene and diesel next Tuesday.
He said it is uncertain if gasoline prices will go down.
"In the past four trading days, there is a high indication that we will have another rollback. For diesel, it will be more than one peso. For kerosene, our estimate is more or less one peso. For gasoline, we are not yet sure. Maybe there will be no adjustment ...but let's wait for today, it will depend on the trading day, today," he said.
Abad said the rollback was due to the interest rate hike announcement made by the European Central bank on Thursday.
"Because the announcement from the European Central bank that they will increase their interest rate, they made their announcement before the United States (policy rate review next week), we are supposedly waiting for the development in the July 26, 27 policy rate review of the US, but Europe already made their announcement," he said.
"Europe is composed of 27 member countries. If there is this kind of policy rate adjustment. it will really affect the global economy," he added.
Abad said the interest rate hike will help lower the price of petroleum products because it slows down economic activity. Robina Asido/DMS
