Oil companies reduced their prices as a result of traders’ fears on China’s weak fuel demand despite the Organization of the Petroleum Exporting Countries (OPEC) deciding to continue its supply cuts.
Seaoil and Caltex slashed per liter prices by P0.50 on gasoline, P0.25 for diesel and P0.30 on kerosene.
Clean Fuel, Jetti and PTT adjusted per liter prices downward by P0.50 on gasoline and P0.25 on diesel.
Data from the Department of Energy (DOE) as of March 5 showed that Manila price per liter of gasoline (RON95) stood at P67.05, diesel at P60.75 and kerosene, P73.59.
DOE data also showed year-to-date adjustments as of the same date stood at a total net increase of P5.95 per liter for gasoline, P4.05 per liter for diesel and P0.05 per liter for kerosene.
Reuters reported that as of Friday last week, Brent crude futures settled down by 1.1 percent to $82.08 a barrel, while US West Texas Intermediate crude futures went down by 1.2 percent to $78.01 per barrel.
The report said China, the world’s largest buyer of fuel, continued a trend of declining purchases.
The drop in global crude prices is also driven by uncertainties on whether the United States as well as the European Union will soon implement central bank interest rate cuts, it added.
Traders said lower interest rates could spark an increase in oil demand and boost economic activities. – Jed Macapagal