Oil companies led by Petron and Unioil slashed prices by at least P2.50 per liter of gasoline and P2.25 per liter of diesel and kerosene, the biggest price rollback so far this year amid the softening prices of oil worldwide.
Petron Corp. was the first to announce the price cut that took effect at 12:01 A. M. December 7. Petrol and kerosene products in Petron line-up were covered by the rollback.
Unioil Petroleum Philippines followed suit, cutting its price effective at 6 A.M. Sunday. Pump prices at Unioil went down by P2.50 per liter of gasoline and by P2.30 per liter of diesel.
As early as Friday, industry sources hinted at the price cut, a move that the Energy department practically confirmed also on Friday.
Energy Undersecretary Zenaida Monsada earlier said local oil prices would likely continue to decline.
“The indications are it will decrease, because there is no reason for it (not to decline. Yes, we’re expecting rollback for certain products,” Monsada said.
Last December 2, the pump prices went down by P0.50 per liter of diesel and by P0.75 per liter of kerosene. Gasoline was steady on December 2.
The oil industry player announced the price cut amid consumer concerns that oil firms have only announced measly cut in their prices last week although world prices have gone down by some 30 percent since June.
Trade and Industry Secretary Gregory L. Domingo called on producers on Thursday to make adjustments on the prices of their products commensurate to the decrease in transportation costs they are realizing due to the drop in world oil products.
Based on Department of Energy records, the average pump price of diesel fell about 20 percent this year, from P44.63 per liter in January to P36.71 this November, Domingo said.
On Dec. 6, the benchmark US oil price to its lowest level in more than five years after a particularly positive US jobs report for November.
Global prices were already under pressure from the recent decision of the Organization of Petroleum Exporting Countries to leave output unchanged despite ample supplies and from Saudi Arabia’s price cuts for oil exported to Asia and the United States. (Eagle News Service, detailes c/o Alena Mae Flores MST)
