Oil firms cut prices; Luzon on yellow alert


    Consumers will enjoy lower priced petroleum products for the week but may have to limit their electricity consumption as power reserves in the Luzon Grid is scarce due to the shutdown of several power plants.

    Local oil players are implementing a third consecutive rollback in the cost of petroleum products effective today after a hike in US crude inventories attributed to lower demand for oil.

    According to the Department of Energy (DOE), the latest average Manila price per liter of gasoline (RON95) is at P50.70, diesel at P42.55 and kerosene at P48.25.

    Petron, Shell and Seaoil reduced their prices by P0.10 for both gasoline and kerosene and by P0.25 for diesel.

    PTT and Phoenix Petroleum slashes their price by P0.10 per liter for gasoline and P0.25 per liter for diesel.

    DOE said as of October 22, year-to-date adjustments have amounted to a net increase of P5.61 per liter for gasoline, P4.02 per liter for diesel and P0.96 per liter for kerosene.

    Reuters reported that as of last Thursday, brent crude ended at $61.69 a barrel while West Texas Intermediate crude settled at $56.20 a barrel.

    However, the report also noted that global crude prices may rise next week due to signs of progress in US-China trade talks and claims that an initial deal is up for signing within the month.

    The DOE meanwhile placed the Luzon grid yesterday under yellow alert level as the total capacity of power plants that went on planned outages were at 1,773 megawatts (MW) while those that are on unplanned outages were at 1,470 MW.

    In a report disseminated, a total of 1,619 MW worth of derated power from various power plants also contributed in the said incident.

    Most of the power plants that shut down are expected to return today November 5 but some of them are yet to submit their expected date of maintenance completion.