Oil firms cut prices by P1

Petron Corp., Pilipinas Shell Petroleum Corp. and Chevron/Caltex Philippines roll back their prices of gasoline, diesel and kerosene by P1 per liter today.

Total Philippines, Flying V Petroleum Corp. and Unioil Philippines have not yet made any official announcement although they are expected to follow suit.

Eastern Petroleum Corp. and SeaOil Petroleum also reduced prices again by another 50 centavos, bringing to P1 per liter the two firms’ price rollback. Eastern Petroleum and SeaOil Petroleum reduced pump prices by 50 centavos per liter last Wednesday ahead of all oil players.

Global prices of oil have plunged dramatically in reaction to the bankruptcy of Lehman Brothers, Merrill Lynch and the American International Group. It stabilized somewhat when the US Federal Reserve decided to extend an $85-billion bailout package for AIG.

High fuel and commodity prices, wider economic problems and the recent financial disasters reduced demand dramatically thus forcing crude prices from a high of $147 per barrel in July to the present $97.16 per barrel for US crude.

Dubai prices softened to $86.86 per barrel, for an average of $98.10 per barrel for the month of September against the $112.86 average rate per barrel for the month of August. Brent crude fell to $87.50 per barrel from a September average of $99.88, and $114.21 August average. US crude fell to $97.16 versus a September average of $102.00 and an August average of $116.63.

Major local oil firms buy Dubai crude, while non-refining oil players import finished or refined fuel, both ex-Singapore.

Meanwhile, the peso continued to weaken against the US dollar, depreciating to an average P46.79 for September.