WORLD OIL PRICES (December 27-31, 2021 trading days)

Dubai crude has increased week-on-week by almost US$4.75/bbl. Both MOPS gasoline and MOPS diesel have also increased: gasoline by around US$ 4.60 per barrel and diesel by nearly US$ 5.60 per barrel.

Reasons for the Price Adjustment

• Oil is lower in the Asian session, with volatile price movements in the final sessions of the year likely attributable to Covid-19 concerns. Analysts foresee easing prices in the first quarter of the year behind expectation of modest inventory build, but will likely rise once lockdowns due to the Omicron variant of Covid-19 cease or become less frequent as the winter ends.
   
• Crude prices remained under pressure as renewed omicron concerns pervaded the market. The fast-spreading variant triggered several countries to make tighter measures and raised concerns of lockdowns.
   
• Asian gasoline complex remained healthy with omicron impact still not visibly noted in the mobility metrics tracked by Apple that continue to remain robust across all Asian nations.

• In the Asian gasoil/diesel market, fundamentals remained strong even as regional supply length increased due to closed East-West arbitrage lanes and higher gasoil exports from China this month.

• Singapore’s gasoil exports fell 71.92% week on week to 107,731mt over Dec. 23-29. Outflows were highest to Indonesia at 39,066 mt, followed by Myanmar and Malaysia at 35,161 mt and 17,190 mt, respectively.

FOREX: Philippine peso depreciated week-on-week against the US dollar by P0.53 to P50.54 from P50.01 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

The domestic price increases for the week were attributed by the week-on-week increase in MOPS. The depreciation of Peso also added to the impact of the volatile MOPS.

Effective 04 January 2022, the oil companies implemented a price increase in domestic oil products. Both gasoline and kerosene have increased by P1.85 per liter while diesel has increased by P2.40 per liter.

These are the first price adjustment for the year. In 2021, prices had a total net increase of P17.65/liter for gasoline, P14.30/liter for diesel and P11.54/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