MANILA, Philippines - Pilipinas Shell, Petron Corp., Chevron (formerly Caltex), Phoenix Philippines, and Seaoil Philippines yesterday reduced the prices of petroleum products by 25 centavos per liter.
Shell spokesman Roberto Kanapi said the latest price adjustment reflects the decline in international product prices.
Based on the Department of Energy’s oil price monitoring, international rates decreased last week by $4 per barrel for imported gasoline and $3 per barrel for diesel because of a slowdown in demand in the US, the world’s biggest oil consumer, after the end of its summer driving season.
The price reduction was aided by speculation that oil producing nations belonging to the Organization of Petroleum Exporting Countries (OPEC), which accounts for 40 percent of world oil production, will keep their output steady.
The depreciation of the peso by 55 centavos, from P48.23 per dollar in August to P48.78 per dollar in September, tempered the decrease of local pump prices.
Local oil prices are computed based on the movement of oil prices in the international market. Other factors affecting pump prices are foreign exchange movement and other costs such as freight and insurance.
Oil firms reduced last Sept. 8 gasoline prices by 50 centavos per liter and P1 per liter for diesel and kerosene.
Multisectoral group Bagong Alyansang Makabayan (Bayan) said that based on its computation of the global price movements, which is being used by the local oil firms as benchmark, oil products being sold in the country are overpriced by an average of P6.71 per liter.
Former National Economic and Development Authority (NEDA) director-general Ralph Recto also claimed that oil companies have overpriced their products by P8 per liter during the height of global oil crisis last year. Recto’s allegation has yet to be proven.