OPEC decision can lead to fuel price rollbacks

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Local fuel prices see a continuous downtrend as the Organization of Petroleum Exporting Countries (OPEC) and its allies decided to make no further output cuts. 

In a report by the Philippine Star, Department of Energy (DOE) Oil Industry Management Bureau director Rino Abad said that there is a big chance that fuel prices will continue to decline in the coming weeks following OPEC + ’s decision. 

In October, OPEC+ agreed to cut oil production by two million barrels a day. 

However, Abad noted that the European Union has agreed on the Russian oil price cap, which could also reduce supply. He added that China’s relaxation of their lockdown could also increase demand. 

Nevertheless, the DOE Official noted that the outcome of OPEC+’s meeting was a welcome development. 

This week, oil companies will cut diesel prices by Php 3.40 per liter, Kerosene by Php 4.40 per liter, and Gasoline by Php 1.70 per liter.