According to the chamber, the BDCs should reduce the tenor from the current forward foreign exchange rate from the average 60-day to 30-day forward rate.

The CBOD made the revelation in its Petroleum Price Outlook, which is the price indicator for the first selling window of August 1 to 15, 2019.

The price outlook said the adoption of a 30-day forward rate instead of a 60-day forward rate the CBOD said can reduce pump prices by about 2%. This is expected to help reduce consumer prices at the pump.

The forward forex rate used is the average of the quoted indicative forward forex rate from major oil financing banks adjusted by the covered-interest parity pricing model.

The 60-day forward rate is computed as the average of selected major oil financing banks.