Unioil Petroleum Philippines Inc. initiated the price cut of 40 centavos on all its products, followed by Shell, Petron and Eastern Petroleum Corp.
Petron said it reduced the price of diesel by 42 centavos and gasoline by 40 centavos.
Pilipinas Shell reduced the pump prices of diesel by 42 centavos per liter and gasoline and kerosene by 40 centavos per liter.
Unioil vice president for corporate communications Lawrence Luan said the latest price reduction would reflect prices of world crude. "Prices have gone down in November compared to October level," he said.
The Dubai crude prices, the benchmark for pricing local oil products, dropped by $3 from $26.31 per barrel in October to $23.31 in November.
Oil companies implemented price reduction of 25 centavos for gasoline and 20 for diesel products last Nov. 18. Unioil, on the other hand, dropped prices of all its products by 25 centavos per liter.
Unioil also announced the launching of Quantum Pure Power in the company’s effort to comply with the Clean Air Act (CAA).
Unioil said they reduced the aromatic content of their new product to 35 percent and benzene to two percent in compliance with the CAA mandate.
The CAA indicates that by year 2003, unleaded gasoline should contain aromatics not exceeding 35 percent by volume and benzene not exceeding two percent. Currently, the aromatic content requirement is 45 percent and four percent for benzene.
Aromatic hydrocarbons have been found to cause harm to the ozone layer. Benzene, on the other hand, is a known carcinogenic. Long-term exposure to benzene can cause a variety of illnesses ranging from nausea, convulsions and even leukemia.
Amid clamor for delay in the implementation of CAA provisions by big oil players, Unioil said there is no need.
Last week, Congress resolved that CAA should be fully implemented by next year.
Based on industry estimates, there should be an increase of about 80 centavos to P1.50 per liter in the price of unleaded gasoline if CAA is fully implemented.
Other small players like Unioil, however, argued the impact would only cost them an average of 20 centavos per liter.