Manila, Philippines - Total Philippines Inc. and Seaoil are leading another round of substantial oil price reductions.
In an advisory sent to the media, Total said effective today, it will decrease the price of its diesel products by P2 per liter; kerosene and unleaded gasoline by P1.50 per liter; and regular gasoline by P1 per liter.
Seaoil, meantime, will roll back its prices on diesel and kerosene by P2 per liter; premium and unleaded gas by P1.50 per liter; and regular gasoline by P1 per liter effective 12:01 a.m. today to reflect price movements in the international market.
Total, however, increased the price of its liquefied petroleum gas (LPG) by P1 per kilo effective yesterday.
On May 8, oil companies rolled back their diesel prices by P1.75 per liter; kerosene by P2 per liter; and 50 centavos and P1.25 for unleaded and regular gasoline, respectively.
As this developed, LPG Marketers Association (LPGMA) president and Rep. Arnel Ty said they expect a drop in LPG prices by next month.
Ty said after they raised their prices by P3 per kilo early this month, there was a noted correction on international contract prices of LPG due to the news of Osama bin Laden’s death.
According to Ty, on the first day of the news, LPG contract prices dropped by as much as $110 per metric ton (MT).
As of yesterday, however, he said there was a slight correction on LPG contract price to $60 per MT.
“We definitely see a drop in domestic LPG prices for next month,” he said, but he did not say how much the decline would be, noting that they would be releasing an official announcement on May 30.
Middle of this week, LPGMA members rolled back the price of LPG by 50 centavos per kilo as an offshoot of the recent decline in LPG contract prices abroad. LPGMA members include Omni Gas, Pinnacle Gas, Island Gas, Cat Gas and Nation Gas.
The huge drop in international LPG contract prices also prompted LPGMA members to hold back on their impending P1.50 per kilo increase expected this month.
For the month of May, LPG prices in the international market rose by $94 per metric ton compared to the previous month.
It was learned that at $94 per MT increase in LPG contract prices, local LPG products should have been raised by P4.50 per kilo.