Oil Monitor as of 07 March 2018

WORLD OIL PRICES  (February 26-March 2, 2018 trading days)

Dubai crude increased week-on-week by about US$0.70 a barrel. MOPS gasoline and diesel also increased by about US$1.40 and US$1.00 per barrel, respectively.

Reasons for the Adjustment

  • Reports that Libya's National Oil Corporation (NOC) invoked force majeure last week, on supply from its El-Feel oil field was one factor that supported oil prices. Protests by local tribes and security guards provoked the NOC’s action.

  • Signs of robust production curbs by OPEC and non-OPEC countries and a slight fall in U.S. production pushed the prices of oil on Tuesday.

    • Saudi Arabian oil minister Khalid al-Falih indicated that its crude production would be well below the production cap as the OPEC and its allies were committed to reducing output to bring balance and stability to the market.

    • Prices were also supported by U.S. Energy Information Administration data ending last week that showed a dip in domestic oil production to 10.27 million barrels per day from 10.271 million bpd in preceding week.

  • Asian gasoline market continued to be weak on sluggish spot market activity, pressured by soft spot demand amid excess supplies within the region. Supplies were coming from China and India. Market sentiment in the Middle East remained stable as well due to tepid demand and ample supplies. The rebound on prices seemed temporary, Platts further noted.

  • For the gasoil/diesel market, demand remained soft in the region following the Lunar New Year holiday season; but demand is reportedly expected to pick up this month while supply is capped by the start of maintenance season at refineries around the region. Platts also noted that demand is usually higher in the second quarter than the first quarter.

  • The week ended with bearish gasoline market as supply was still seen to be outstripping demand in the near term. Platts stressed of emerging demand, but still insignificant.

FOREX:  The value of Philippine peso per US dollar appreciated by P0.18 to P51.96, from P52.14 in previous week.

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Effective 06 March 2018, most of the oil companies implemented an increase P0.50/liter in gasoline, P0.30/liter in diesel and P0.80/liter in kerosene.

Year-to-date, total adjustments stands at a net increase of P1.40/liter for gasoline, P1.70/liter for diesel and P3.10/liter for kerosene.

As monitored, shown below are the retail prices in Metro Manila beginning March 06, 2018.

Products Price Range Common Price
Diesel 35.80-42.55 41.00
Gasoline* 46.80-57.12 52.02
Kerosene 43.50-53.70 48.96
* 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 05 March 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 throughout the whole month.

Like all other petroleum products, the Philippines has no influence over the LPG CP as the country’s domestic requirement is very small versus the world demand.

For the month of March, LPG Contract Price decreased by US$41.50/MT to US$469.50/MT, from US$511/MT a month ago.


International LPG Market Development

  • The March propane CP is below traders’ expectations of $485/MT, while the butane CP is within traders’ positions of $455-$475/MT.
  • The region is well supplied with flagging demand.  Saudi Aramco, Qatar Petroleum and Iran cargoes are adding supply to the region.
  • However, demand is recovering, led by China.  Cooler temperatures and a switch to using LPG from natural gas bolstered LPG imports since January. With China returning from the long Lunar New Year break and most PDH plants returning from maintenance in March, LPG demand is expected to gradually recover as seen in the Asia spot market, Platts noted.
  • Demand from Japan remained weak even during winter, but Asia is seeing growing demand from Indonesia and India.
  • Soft LPG prices have kept propane and butane at steep discounts to naphtha since mid-2017, encouraging more North Asian petrochemical makers to switch to LPG as alternate feedstock.


Domestic Prices      

LPG players implemented a price rollback, starting 01 March 2018, by P1.65 to P2.00 per kilogram or about P18.00-P22.00 per 11-kg cylinder.

As of 06 February 2018, household LPG in Metro Manila ranges from P517.00 to P742.00 per 11-kilogram cylinder.


For more information, call the Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: www.doe.gov.ph