The oil companies announced the rollback last night amid the falling price of crude oil in the world market and the appreciation of the peso against the US dollar in the local currency exchange.
This was the second time the major oil companies cut their prices since July 20 when fuel prices were cut by 15 to 20 centavos ahead of President Arroyo’s State of the Nation Address.
Shell said the announced price cut was to fulfill its pledge to pass on to local consumers any improvement in prices in the world oil market, but hinted that the volatility of the currency market may lead to higher prices.
"As promised, Shell will strive to pass on the effect of crude and foreign exchange movements on a more frequent basis. Our most recent decision stems primarily from a notable decline in international crude oil costs although slightly dampened by the continued depreciation of the peso," Shell spokesman Reynaldo Gamboa said in a statement.
Dubai crude averaged $23.44 in July against $25.70 in June while the peso weakened on average from P51.52 in June to P53.27 in July, Gamboa said.
Gamboa said they welcomed the recent appreciation of the peso against the US dollar after the central bank imposed stiff penalties on currency speculation but other factors may push up prices next month.
"(We) view with some concern the Organization of Petroleum Exporting Countries (OPEC) decision to cut production volume by one million barrels a day by Sept. 1 and the expected stockpiling of heating oil for the coming winter by the northern hemisphere countries," Gamboa said.
The Shell spokesman reiterated the need for legislation and initiatives to promote energy efficiency and conservation in view of the realities of more expensive crude in the world market.