Oil companies are expected to implement oil price reductions in March due to the low oil demand in the world market.
The current coronavirus disease (COVID-19) threat has affected crude oil demand globally after several countries implemented travel bans to prevent the spread of the disease.
Based on the advisory of oil industry players, diesel prices will drop from P1.50 to P1.80 per liter. Meanwhile, gasoline prices will drop from P1.20 to P1.50/liter.
According to the Department of Energy (DOE), the low demand prompted the members of the OPEC (Organization of the Petroleum Exporting Countries) to cut one million barrels per day in the supply.
However, Oil Industry Management Bureau (OIMB-DOE) Asst. Director Rhodela Romero said this might cause an oil price hike.
“Bumabalanse naman po ang pagbawas ng suplay (There is a balance in the supply cut),” she said.
READ: LPG rollback seen in March
Meanwhile, the Liquefied Petroleum Gas Marketers Association (LPGMA) might also implement a price rollback from P2-P4/kilogram on their LPG beginning March.—AAC (with reports from Joan Nano)
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