Price rollbacks ranging from P0.80 per liter to P1.40 per liter of fuel products will take effect today, fuel companies said yesterday.
For the second straight week, Pilipinas Shell and Seaoil reduced their per-liter gasoline prices by P0.90, diesel by P1.40 and kerosene by P0.80.
Clean Fuel and PTT adopted similar price cuts on gasoline and diesel. They do not sell kerosene.
The price cuts come as the biggest weekly reductions for gasoline and diesel so far this year — a result of favorable factors in the world market, the Department of Energy (DOE) said.
An independent fuel retailer views the drop in global oil prices as triggered mainly by weak US economic figures, translating to easing demand for fuel.
Data from the DOE as of February 25 showed Manila’s current prices per liter of gasoline (RON91) at P61.85, diesel at P57.65 and kerosene at P73.8. In the year to date, price movements for oil products have resulted in a total net increase of P4.75 per liter of both gasoline and diesel, and a net increase of P2.90 per liter of kerosene.
Leo Bellas, Jetti Petroleum Inc. president, told reporters the latest price reductions may have also been influenced by a perceived potential rise in supply as the output from several countries are expected to increase.
“Concerns that the trade war (between the US and its trade partners) could cause oil demand to fall have eased lingering worries about a tighter near-term supply, despite fresh US sanctions on Iran,” Bellas said.
Rodela Romero, DOE’s Oil Industry Management Bureau director, said other factors that influenced this week’s fuel prices include South Korea’s sluggish fuel demand, caused by reduced tax benefits.
Romero also said there are currently high inventories of American refined fuel products.
