After two months of oil price hikes, industry players are rolling back their prices to reflect global cost movements, pulled down by fears the resurgence of the new coronavirus disease 2019 (COVID-19) cases will stall fuel demand growth.
According to the Department of Energy (DOE), the latest average Manila price per liter of gasoline (RON95) is at P44.90, diesel at P38.05 and kerosene at P37.87.
Shell and Seaoil dropped the per liter prices of gasoline by P0.65 and kerosene by P0.40.
The price of diesel is unchanged.
PTT and Phoenix Petroleum cut the cost of gasoline by P0.65 per liter.
As of June 30, year-to-date adjustments on fuel prices summed up to a net decrease of P4.97 per liter for gasoline, P8.84 per liter for diesel and P12.99 per liter for kerosene.
Reuters reported that as of Friday last week, Brent crude was down by 0.9 percent and settled at $42.76 a barrel while US West Texas Intermediate crude fell 1.1 percent to end at $40.21 a barrel.
The United States’ report of more than 55,000 new COVID-19 cases last Thursday, a new daily global record for the pandemic has effectively pulled down crude prices.
However, analysts warned prices can recover quickly because of the record supply cut by the Organization of the Petroleum Exporting Countries and its allies. This is also reinforced by the fact that China has reported its fastest rate of expansion in its services sector for over a decade last month.
Likewise, the bankruptcy filing of American shale pioneer Chesapeake Energy is expected to support prices by raising expectations production will decline.
The local price adjustments reflect global pricing and do not factor in the additional costs from the 10- percent import duty that was implemented by Executive Order (EO) 113 last May.
The DOE is yet to issue an official guideline on the supposed re-adjustment of tariff on fuel products back to zero percent since under Section 7 of EO 113, the additional tax must be scrapped upon the certification of the government that a trigger price of Dubai Crude reaches $64 per barrel or when the Bayanihan to Heal as One Act ceases to be in effect, whichever comes first.
The law lapsed one June 25.
