DOE on Gas prices

Gas prices in the Philippines have been on a continuous climb over the past few weeks. Prices are going so high to the point that some motorists are dreading the point where it will reach the P100 per liter mark. As it currently stands in certain areas gas prices are still within the P70 area for both diesel and gasoline. Globally the price of oil is about $110 USD per barrel which is concerning but still relatively manageable. 

That being said, this raises the question, what would happen if the price of oil goes beyond what it is now? To answer this question, the Department of Energy (DOE) has released its estimate as to what motorists can expect to pay within the coming weeks if international prices go up. 

Based on the data that the government agency has, it doesn’t seem to be looking too good for car owners in the coming weeks. If the price of oil reaches $125 USD per barrel we could see local gas prices hit the P81 mark for gasoline, as for diesel it could reach an average price of around P75. If the price of oil goes even higher to around the $140 USD mark, we are looking at around P86.72 per liter for gasoline and P81.10 for diesel. With these projections not looking good in terms of pricing, the question now arises, is there any way for the price of fuel to go down?

Fuel prices can go down, but this will depend on the Organization of Petroleum Exporting Countries (OPEC). If Saudia Arabia and the UAE can muster enough production power to supply the world with more oil, we could see fuel prices dropdown. If other oil-producing countries were to also ramp up their production and meet the global demand then, we could soon see prices drop down to what they were in a couple of months. It will take some time before more oil hits the global market to offset the great demand.

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