Oil firms cut fuel prices

MANILA, Philippines – Oil companies announced a P1.50 per liter rollback in gasoline prices yesterday on the back of sliding costs of petroleum in the world market.

Unioil Petroleum Philippines Inc. was the first to announce a price reduction, which took effect at 2 p.m., followed by Eastern Petroleum and Seaoil.

The price cuts of Petron Corp. and Chevron Corp. took effect at midnight while that of Pilipinas Shell Petroleum Corp. became effective at 6 a.m. today. Shell’s price cuts covered all of its petroleum products.

“The trend we’ve seen in the past 10 days is quite tentative, so if this continues, there is some degree of stability in the prices that we can give some relief to our consumers,” Petron chairman Nicasio Alcantara said.

“Unioil has decided to roll back the prices of gasoline due to the decline in the prices at the international market,” Unioil general manager Luisito Medina-Cue said. Oil prices have increased 21 times since January this year.

Militant group Bagong Alyansang Makabayan or Bayan welcomed the rollback in prices but said it’s not enough.

“We welcome the P1.50 rollback in oil prices. However, we note the slow pace that the rollbacks are being implemented. There has been some $20 decline in world crude prices,” Bayan secretary-general Renato Reyes said.

“Why is it that when it’s time to bring down prices, the Big 3 are so slow? When it’s time to raise pump prices, they’re so fast,” Reyes asked.

“Due to continuous decline in world oil prices, we are pleased to advise that Shell will roll back prices of gasoline, diesel and kerosene by P1.50 per liter and LPG by P1.50 per kilo effective 6 a.m. Aug 1, 2008,” Shell external affairs general manager Roberto Kanapi said.

Total Philippines Inc., as of press time, had not yet announced a price cut.

One day before the State of the Nation Address of President Arroyo, Shell and Total raised their diesel prices by P1.50 per liter while Petron and other independent petroleum players opted for a freeze in prices.

Shell defended its move by saying it is part of competition and that it didn’t have to take a cue from its competitors. But officials admitted that the move had an impact on sales volume.

Oil companies said they have recouped their under-recoveries for gasoline but not for diesel.