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Diesel, kerosene price rollback, gasoline increase seen next week

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ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="An attendant fills a tricycle’s gas tank at a refilling station along Timog Avenue in Quezon City on August 1, 2023. Jonathan Cellona, ABS-CBN News" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2023/tvpatrol/10/13/20230801-oil-price-hike-protest-jc2715.jpg"/><figcaption>An attendant fills a tricycle’s gas tank at a refilling station along Timog Avenue in Quezon City on August 1, 2023. Jonathan Cellona, ABS-CBN News</figcaption></figure></div><p>MANILA — Diesel and kerosene prices are geared for another rollback, while gasoline prices could go up in the third week of October, a Department of Energy (DOE) official said on Friday. </p><p>&quot;Yung diesel at kerosene, good news tayo. Aabot yata ng P1 ang rollback, depende na lang [sa trading] ngayong araw,&quot; said Rino Abad, director of DOE&#x27;s Oil Industry Management bureau. </p><p>&quot;Mukhang magkakaroon po ng increase sa gasoline… less than 50 centavos po ang increase,&quot; he told TeleRadyo Serbisyo.  </p><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2842302" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div><div><strong>HAMAS-ISRAEL CONFLICT </strong></div><p>Fears of oil supply disruptions due to the conflict between Israel and Hamas are largely &quot;speculative&quot;, Abad said. </p><p>&quot;Hindi naman engaged sa malaking supply ang Israel… Halos hindi siya nasa radar ng mga oil supplier na bansa,&quot; he said. &quot;Wala ho tayong ini-import na kahit anong petroleum product galing Israel.&quot;</p><p>&quot;Admittedly, yung kaniyang neighboring countries…ay malalaking bansang nagsu-supply ng oil. Napakababa ho ang possibility na magkaroon po ng supply disruption. Hindi naman sila directly engaged in a military conflict with Israel,&quot; he added.</p><p>A weekend attack by Hamas on Israel, and Israeli&#x27;s military retaliation, have left thousands dead and rattled oil markets, amid fears that other nations might intervene and possibly disrupt shipments in the Middle East.</p><p>The region accounts for more than one-third of the world&#x27;s seaborne oil shipments.</p><p>&quot;While the prospect that oil supply flows will be impacted currently remains limited, the deadly strikes prompted traders to price in a higher geopolitical risk premium,&quot; the International Energy Agency said in its regular monthly report.</p><p>&quot;There has been no direct impact on physical supply,&quot; it added.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/overseas/10/13/23/us-always-by-your-side-blinken-tells-israel-in-war-with-hamas">US &#x27;always by your side&#x27;, Blinken tells Israel in war with Hamas</a></li>	<li><a href="https://news.abs-cbn.com/overseas/10/13/23/israeli-artillery-fires-on-gaza-every-30-seconds">Israeli artillery fires on Gaza every 30 seconds</a></li></ul><p>But with supply and demand on the oil market currently tightly balanced, the IEA said it &quot;stands ready to act if necessary to ensure markets remain adequately supplied&quot;.</p><p>The Paris-based agency, in addition to its analysis and advisory roles, coordinates the release of emergency stocks held by its 31 mostly advanced-economy member nations.</p><div><strong>POWER ISSUES</strong></div><p>Meanwhile, the Energy Regulatory Commission has asked Meralco to implement the most optimal energy mix to prevent a repeat of the considerable increase in power rates this month.</p><p>Meralco had announced an overall rate hike of P0.42/kwh due to higher generation charge brought about by depleting natural gas reserves from the Malampaya facility.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/10/11/23/meralco-hikes-power-rates-in-october">Meralco hikes power rates in October</a></li></ul><p>In the absence of natural gas, 2 major plants used the more expensive liquid condensates, which cost double the price of natural gas for the electricity it produces. <br/> <br/>But Meralco said this was already the optimal energy mix.</p><p>Meralco head for utility economics Larry Fernandez said if the 2 Lopez-owned plants were not allowed to produce power using liquid condensates, there could have been a deficiency in power supply for Luzon that would push up prices at the spot market.</p><p>The Lopez-owned plants produce about 1,900 megawatts of power for Meralco.</p><p>The creation of a regasification facility for imported liquified natural gas should have replaced some indigenous natural gas from Malampaya.</p><p>But the construction of the facility has been delayed, making them unable to fully process imported liquefied natural gas. </p><p>As a result, power plants need to use more expensive liquid condensates to produce electricity.</p><div><strong>— With a report from Agence France-Presse and Alvin Elchico, ABS-CBN News</strong></div>

Diesel and kerosene prices are geared for another rollback, while gasoline prices could go up next week, an official said on Friday. 