August 2024 – PIP – Philippine Institute of Petroleum

WORLD OIL PRICES (July 22-26, 2024, trading days)

The week-on-week price of Dubai crude has decreased by about $2.90 per barrel. The international price of gasoline, diesel and kerosene have also decreased week-on-week by about $2.40, $2.20 and $2.00 per barrel, respectively.

Reasons for the Price Adjustment¹

Crude oil futures fell on weaker US economic data, weak Chinese demand despite rate cut and unexpected contraction in South Korea’s Q2 GDP creating demand concerns in Asia.
- On July 25, the People’s Bank of China cut the country’s one-year medium-term lending facility by 20 basis points, but this move failed to spur demand, and the sentiment remained bearish.
- South Korea’s second-quarter gross domestic product unexpectedly contracted 0.2% on the quarter, contrasting with market expectations of a 0.1% expansion. The weakness was attributed to sluggish domestic demand.
The OPEC+ alliance’s biggest overproducers – Iraq, Russia and Kazakhstan, agreed on July 24 to gradually reduce production by a collective 2.284 million b/d between now and September 2025 after an overproduction in H1 2024.
- OPEC+ is also scheduled to gather virtually for its Joint Ministerial Monitoring Committee meeting Aug. 1, with consensus suggesting that OPEC+ is unlikely to alter its oil output.
The Asian gasoline complex was firm as cargoes were still moving to Persian Gulf due to favorable margins and demand was seen stable amid lower crude prices.
- Further support to prices came from shutdown of RFCC unit at Dalin in Taiwan’s CPC refinery.
- Meanwhile, refineries are coming online from maintenance replenishing supplies in the region in the near term, and Indonesia’s imports of light distillates fell 13.38% on the month and 11.60% on the year to 1.877 million mt amid lower naphtha and LPG inflows.
Asian gasoil/diesel complex edged higher on weak crude prices while Russia is considering another ban on diesel exports. However, the complex was still weighed down by seasonal demand lull and supply surplus in the region amid unfavorable arbitrage economics.

FOREX: The week-on-week average of Philippine peso depreciated versus the US dollar by P0.03 to P58.42 from P58.39 in previous week.

DOMESTIC OIL PRICES

Effective 30 July 2024, the oil companies implemented a decrease of P0.75/liter in gasoline, P0.85/liter in diesel and P0.80/liter in kerosene.

Year-to-date, total adjustment of gasoline and diesel stands at a net increase of P9.60/liter and P6.85/liter, respectively. On the other hand, kerosene has a total net decrease of P0.30/liter.

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1 Asia Pacific 26 July 2024 Weekly Recap by S & P Global Platts Analytics

For the updated prevailing retail pump prices, please refer to this link:

https://www.doe.gov.ph/price-monitoring-charts?q=retail-pump-prices-metro-manila

Other recommended reference sites:

For more information, call the

Department of Energy
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
Website: https://www.doe.gov.ph

The Philippine Institute of Petroleum (PIP) has successfully completed its latest oil spill response exercise, marking the second of three drills conducted annually under the WISE (Waterborne Industry Spill Equipment) agreement amongst PIP members -Chevron Philippines, Petron Corporation, Shell Philippines Corporation, Total Philippines, PTT Philippines, and Isla Petroleum and Gas. The first drill took place on April 24 at Shell Philippines’ terminal in Tabangao, Batangas.

The second exercise, led by Malayan Towage and Salvage Corporation (MTSC), was held on July 18 at the port of the South Reclamation Project (SRP) Cebu City. This is part of PIP WISE Philippines’ continuous advancement program, designed to test and improve the readiness and capabilities of response teams and their oil spill response equipment through the conduct of actual exhibition or simulation of oil spill response for Tier 1 to Tier 2 oil spill incidents.

The event was attended by representatives from PIP member companies, the Philippine Coast Guard Cebu (Talisay and Aduana Sub-Station) headed by Central Commander Cebu CG Capt Gerome Lozada, the Cebu City Disaster Risk Reduction and Management Council, the PCG Marine Environmental Protection Command, the Cebu Port Authority, and the Department of Energy-Oil Industry Management Bureau (OIMB).

Coast Guard Captain Jerome Lozada expressed appreciation to PIP and MTSC for their efforts in enhancing oil spill response readiness. PIP WISE extends its gratitude to all participants and observers for their valuable contributions to the said drill.

Tugboat Pacific Rose 10 and Tugboat Pacific Rose 1 deployed the spill and started maneuvering as they make a “U” Formation and form a barrier around the spill, during the simulated exercise at Cebu City. Photo courtesy of Malayan Towage and Salvage Corporation during the simulation exercise held in SRP Cebu City.

Tugboat Pacific Rose 10 (left) as the lead OSR tug and Tugboat Pacific Rose 1 (right) as the back-up/assist, deployed the spill boom to make a “U” Formation as a barrier around the spill, holding the oil in place more efficiently. It was followed by “J” formation to prepare for the deployment of skimmer. Photo courtesy of Malayan Towage and Salvage Corporation during the simulation exercise held in SRP Cebu City.

The PIP’s oil spill response organization – Malayan Towage and Salvage Corporation is preparing to launch the oil skimmer, after the product has been contained in the spill boom. Photo courtesy of Malayan Towage and Salvage Corporation during the simulation exercise held in SRP Cebu City.

The members of the Philippine Institute of Petroleum (Chevron, Petron, Shell, PTT, Total and Isla) together with the other attendees and participants of the PIP WISE Oil Spill Response Exercise from PCG, Cebu Port Authority, CDRRMC and the DOE-OIMB.