Oil Monitor as of 03 July 2018


WORLD OIL PRICES  (June 25-29, 2018 trading days)

Dubai crude has increased week-on-week by around US$ 2.50/bbl. Similarly MOPS gasoline and diesel have also increased by more than US$ 1.70 and US$1.30 per barrel, respectively.

Reasons for the Adjustment

Asian gasoil (diesel) market

  • G asoil market remained depressed as rising outflows from India, Middle East and North Asia continued to outstrip waning demand.

    • Exports from India have been increasing in recent weeks as the monsoon season has curbed domestic demand.

    • Most refiners are still maximizing production due to healthy margins for the middle distillate, especially on jet fuel and diesel/gasoil.

    • Demand is waning in the region due to heavy rains, an ongoing fishing ban in China and the monsoons in India were key reasons hampering demand; thus, suppliers have started to source alternative homes for their surplus barrels.

Asian gasoline market

  • Gasoline market remained largely stable amid tepid spot demand and stable regional supplies.

    • The market was mainly looking out for Indonesia’s and Pakistan’s spot demand.

    • Supply is sufficient within Asia and more is expected to enter the market heading into third quarter.

    • The market was expected to be bearish moving forward, unless unexpected circumstances occur in the near future.

Factors affecting crude oil prices

  • Oil prices rose sharply this week after the US State Department announced it would offer no waivers to Iran's oil buyers when sanctions snap back in November, a hard - line approach many allies did not expect after the Obama administration allowed them to contin ue some imports in 2012 - 2015 as long as they made significant cuts every six months.

  • Massive drawdown in US crude stocks, along with Libyan and Venezuelan supply concerns.

FOREX:  Week-on-week value of Peso depreciated against the US dollar by P0.04 to P 53.45 from P 53.40 in the preceding week .

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DOMESTIC OIL PRICES      

Effective 03 July 2018, most of the oil companies have increased their prices by P 0.65 /liter for gasoline, P0.55/liter for diesel and P0.70/liter for kerosene.

Year - to - date total adjustments stand at a net increase of P 5.30 /liter in gasoline and P6.25 /liter in diesel.

As monitored, shown below are the retail prices in Metro Manila beginning July 03, 2018.

Products Price Range Common Price
P/liter
Diesel 41.20-46.15 44.50
Gasoline* 49.45-59.42 54.20
LPG, P/11-kg cylinders 580.00-800.00  
* RON 95

 

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

 

LPG Price Monitor as of 02 July 2018


LPG Contract Price (CP)

LPG Contract Price (CP), commonly called the “ Saudi CP ” is the primary driver of LPG pricing in the Far East including the Philippines . It is an international price benchmark set at the beginning of each month by Saudi Arabia’s state - owned oil company Saudi Aramco.

The DOE refer to the LPG/Saudi CP and forex monthly average changes in determining/monitoring the price adjustments of LPG in the domestic market. Following the timing of the monthly changes in CP, domestic price of LPG also vary every first day of the month and remain constant through out the whole month.

Like all other petroleum products, the Philippines has no influence over the LPG CP as the country’s domestic requirement is small versus the world demand. For the month of July, LPG Contract Price increased by US$ 5.50/MT to US$ 565.50/MT, from US$ 560.00/MT last month.

International LPG Market Development positions

  • The July propane and butane CPs are steady to slightly higher than traders' expectations;
  • The July propane CP reflect the first fall after two straight sessions of increases, while the butane CP continued on its fourth straight session of increase , S&P Global Platts data showed;
  • Demand for evenly split cargoes and butane from India and Indonesia have lent support to butane values over propane;
  • Aramco's CPs, which set the price of LPG lifted from the Saudi ports of Yanbu, Ras Tanura and Ju'aymah under term supply contracts, are closely watched by the market as they tend to set a base level for LPG pricing for most markets East of Suez.

Domestic Price

Oil companies increased the price of LPG effective 01 July 2018 by P0.90/kg or about P10.00/11-kg cylinder. Auto LPG likewise increased by P0.50/liter. As of 02 July 2018, household LPG in Metro Manila ranges from P580.00 to P800.00 per 11-kilogram cylinder.

For more information, call the
Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS:(0915) 4469421

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