Oil prices slashed

MANILA, Philippines - Due to continuing easing of international oil prices, local petroleum players will reduce anew their pump prices effective today.

Petron Corp., Pilipinas Shell Petroleum Corp. and PTT will implement a 45-centavo and 10-centavo per liter cut on prices of their gasoline and kerosene products, respectively.

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

The two oil firms, on the other hand, will raise the price of their diesel by 10 centavos per liter.

PTT Philippines, one of the largest independent oil players owned by the government of Thailand, does not sell kerosene products in the Philippines.

Meanwhile, another independent player, Eastern Petroleum Corp. (EPC), will carry out a higher rollback of 50 centavos per liter for gasoline but will not adjust diesel prices.

EPC chairman Fernando Martinez said he sees domestic oil prices – though normally unpredictable as it just takes its cue from global market movements – to remain stable in the next weeks.

As of March 20, gasoline prices in Metro Manila range from P49.35 to P58.55; diesel P41.45 to P47.85, and kerosene P46.10 to P5.648.

As of press time, other oil firms have yet to announce their price adjustments. Under a deregulated environment, industry players normally follow each other’s price movements.

Based on the Department of Energy (DOE)’s oil price monitoring, there has been a decline in prices of finished and crude products in the international market.

The DOE noted that for the period of March 10 to 14, the Asian gas oil/diesel market continued on its downward trajectory as weakness in the European and Asian markets and surplus in the 10 ppm sulfur gas oil combined to pressure the market lower.

It was also noted that this second-quarter, refinery maintenance may somehow lend some support to balance the market.

“Japan, which typically exports 10-15 MR-sized gasoil cargoes per month, is expected to export less 10 ppm sulphur gasoil in April than it did in March due to scheduled maintenance and rebounding domestic demand.”

Dubai crude, the benchmark being used by local oil refiners, on the other hand, decreased week-on-week by $1.30 per barrel as of March 14. MOPS (mean of Platts Singapore) diesel and gasoline also decreased by about $2 per barrel and $0.80 per barrel, respectively.