Manila, Philippines - Independent oil player Unioil Petroleum Philippines has started this week’s expected round of cuts in oil prices.
In a text message, Unioil said it slashed prices of diesel by P1.65 per liter and premium gasoline, including unleaded gasoline, by P1.50 per liter.
The price adjustments will start at 6 a.m. today.
Late last week, the Department of Energy (DOE) said prices might fall for the fifth straight week by around P1 per liter as international prices continue to decline.
In a text message, DOE Oil Industry Management director Zenaida Monsada said motorists could expect a P1 per liter price rollback.
Prices of Dubai crude, the benchmark for Asia, slipped to $108.80 per barrel on May 9 from $108.95 on May 8 and $109.20 on May 7.
Last week, major and independent oil firms slashed prices of premium gasoline by 70 centavos per liter, regular gasoline by 90 centavos per liter, diesel by 60 centavos per liter and kerosene by 50 centavos per liter.
It was the fourth straight week of price rollbacks as supply concerns subside, given that Iran is already in talks with major powers about Tehran’s disputed nuclear program.
Since the start of the year, there have been 12 oil price increases as against seven price reductions.
Based on DOE data, as of May 8, net increase for gasoline and diesel stood at P4.20 and P1.54 per liter, respectively.
Under the Downstream Oil Industry Deregulation Act of 1998, oil firms can price their products based on market forces so as to encourage competition.
The deregulation law prohibits the government from intervening or influencing the pricing schemes of oil companies.
The DOE, however, requested oil firms to report to the department any price adjustment before its implementation.