Oil companies reduce diesel, kerosene prices

MANILA,Philippines - Pilipinas Shell, Petron, Chevron, and Seaoil Philippines yesterday led a price cut on diesel by 25 centavos per liter and kerosene by 75 centavos per liter.

Shell spokesman Roberto Kanapi said the price rollback, effective today, reflected the decline in international oil prices.

Domestic pump prices are expected to drop after an issuance of an executive order lowering the tariff on imported petroleum products from the ASEAN region.

The Department of Energy (DOE) estimated the EO 850 to result in a 70-centavo per liter reduction, but the oil firms have yet to implement the rollback.

Shell said this is just part of the weekly adjustment of prices relative to international oil market trend.

Energy Secretary Angelo Reyes said last week the impact of the EO should have been reflected this week.

“This is good news. So whatever, the price of oil next week, it will be reduced by 70 centavos per liter next week,” he said.

He said the tariff cut would apply to imported liquid petroleum products and all importations within the ASEAN trade area.

ASEAN countries include the Philippines, Indonesia, Malaysia, Thailand, Singapore, and Brunei.

Oil companies, however, said they have yet to receive a copy of the implementing rules and regulation on the EO.

They argued that their current inventory is not yet covered by the tariff reduction.

The EO was signed last Dec. 23 and took effect Jan. 1. The tariff cut covers petroleum imports sourced from the ASEAN.

Flying V, which initiated the price hike last Jan 13, explained that they are awaiting the EO’s guidelines so they could implement these.

Joey Cruz, Flying V spokesman, told reporters that once the EO is promulgated, this might result in price rollback.

“The oil firms will roll back the 70 centavos once BOC (Bureau of Customs) implements the zero tariff since importation is only beginning to come in. BOC must disseminate the IRR (implementing rules and regulations) to the ports so that implementation can be done. So that’s the sign we are waiting for,” Cruz said. – Donnabelle Gatdula