Caltex, which was also the first among the "Big 3" to raise prices in October last year, reduced prices of gasoline products by 51 centavos per liter and diesel by 42 centavos per liter.
In an interview, Caltex country chairman Nicholas Florio said the company took the lead in bringing down the prices of refined petroleum products after "cautiously factoring in underrecovery costs."
Shell was set to implement its own rollback at midnight, reducing prices by 60 centavos per liter for gasoline products and 50 centavos for diesel and ke-rosene.
In an earlier statement, Petron said it would reduce pump prices by similar amounts.
However, Petron corporate communications manager Antonio Pelayo said the amounts were simply the recommendation of the company, and that individual dealers will have the option to carry the prices or not.
"Since the industry is already deregulated, dealers can make their own price cuts. If they want to effect a higher or lower cut based on their margins, then that is their prerogative," Pelayo said.
He said further rollbacks would depend on the drop in world crude prices and the strengthening of the peso exchange rate in January.
Pelayo also pointed out that the difference in the prices of gasoline and diesel products was due to the initial implementation of the Clean Air Act (CAA), which requires oil firms to reduce the sulfur content in automotive diesel oil from 0.50 percent to 0.20 percent effective Jan. 1, 2001.
"While Petron fully complies with the initial requirements of the CAA, the public must understand that this translates to an additional cost component for diesel of 30 centavos per liter," he said.
Last week, the industry’s new oil players lowered pump prices by an average 25 centavos per liter. Earlier, Energy Secretary Mario Tiaoqui announced a price rollback of as much as 60 centavos for the month of January. – With Pia Lee-Brago