Oil firms slash gas prices by 80 centavos per liter

MANILA, Philippines - Major and independent oil players are slashing fuel prices by 80 centavos to P1.40 per liter effective today.

Petron Corp., Pilipinas Shell Petroleum Corp., Chevron Philippines Inc., Seaoil Philippines Inc. and Eastern Petroleum Corp. cut pump prices for premium gasoline by 80 centavos per liter.

All oil players slashed the price of regular gasoline by P1.40 per liter, save for the Eastern Petroleum which would implement a 90-centavos cut per liter.

Diesel price dropped by 65 centavos per liter, and kerosene by P1.20 per liter.

“This reflects the movements in the international oil market,” Petron said.

However, the rollback failed to completely assuage Energy Secretary Jose Rene Almendras, who remained worried as the global situation keeps changing.

“[The rollback] is good. I hope it continues but I am worried again as the global situation is shifting again,” Almendras said.

He said geopolitical tensions could result in higher prices.

Data from the benchmark Mean of Platts Singapore showed that international prices of unleaded gasoline slipped to $128 per barrel on Sept. 20 from $132 on Sept. 13.

Likewise, prices of diesel eased to $128 per barrel from $135 for the same period.

Benchmark Dubai crude fell to $105 per barrel from $114 a week ago as investors were worried over the slowing economic growth of China.

Last week, oil firms increased pump prices for premium and regular gasoline by 95 centavos and 35 centavos per liter, respectively.

However, they reduced diesel price by 25 centavos per liter while keeping kerosene prices unchanged.

Data from the Department of Energy (DOE) showed that since the start of the year, the net increase for gasoline and diesel hit P2.63 per liter and 82 centavos per liter, respectively.

Under Republic Act 8479 or the Downstream Oil Industry Deregulation Act of 1998, oil firms can set the prices of petroleum products based on market forces to encourage competition.

The deregulation law also prohibits the government from intervening or influencing the pricing schemes of the oil companies.

However, the government, through the DOE, has the power to monitor prices.

For monitoring purposes, the DOE has requested the firms to report to the department any price adjustments.