MANILA, Philippines — Net oil importers in the region are seen to benefit from lower oil prices, and the Philippines is likely to be among the top gainers, a think tank said. In a research note, London-based Capital Economics said the recent drop in global oil prices can tame domestic inflation and give the Bangko Sentral ng Pilipinas enough room to leave policy rates unchanged. “Lower oil prices, which will put downward pressure on domestic energy and fuel prices, mean inflation should drop back over the coming months,” analysts at Capital Economics said. But global oil prices have been declining since the start of October, prompting the country’s economic managers to “review” the need to defer the increase in oil excise taxes. According to Capital Economics, the drop in prices should also lead to a fall in the Philippines’ oil import bill, and provide some support to the current account.

Source: Philippine Star November 28, 2018 06:28 UTC