Another oil price rollback today

MANILA, Philippines - At least three oil companies are cutting pump prices today, marking the 12th consecutive weekly price rollback.

Pilipinas Shell Petroleum Corp. and independent oil players Eastern Petroleum Corp. and Phoenix Petroleum Corp. slashed prices of premium gasoline by P1.80 per liter and regular gasoline by P1.40 per liter.

The price adjustments “reflect the continued decline in the prices of refined petroleum products in the world market,” Phoenix Petroleum said.

The companies also reduced prices of diesel and kerosene by P1 per liter.

“The Organization of Petroleum Exporting Countries estimated global oil supply and demand balance to ease further in the second half of the year due in part to a slowing global economy,” the Department of Energy (DOE) said.

Last week, almost all major and independent oil firms cut pump prices of premium gasoline by P1.20 per liter and regular gas by P1.10 per liter.

The oil firms also reduced prices of diesel by 50 centavos per liter and kerosene by 35 centavos per liter due to lower prices abroad.

The DOE said that since the start of the year, there have been 10 price increases and 14 price reductions.

As of June 19, gasoline and diesel posted a net decrease of P2.12 per liter and P3.76 per liter, respectively, DOE data showed.

Under the Downstream Oil Industry Deregulation Act of 1998, oil firms could set the rate of their products based on market forces to encourage competition.

The Oil Deregulation Law prohibits the government from intervening or influencing the pricing schemes of oil companies.

The DOE, however, asked oil firms to report to the department any price adjustment before its implementation.

Show comments