Oil players are rolling back prices effective today, September 8, after last week’s mixed price movements to reflect developments in global crude market which slumped again due to fears demand will not recover anytime soon.
According to the Department of Energy, the average Manila price per liter of gasoline (RON95) is now P49.05, diesel at P34.25 and kerosene at P37.35.
Shell and Seaoil cut the per liter prices of its products by P0.30 for gasoline, P0.45 for diesel and P0.55 for kerosene.
As of September 1, year-to-date adjustments on fuel prices summed up to a net decrease of P3.92 per liter for gasoline, P8.89 per liter for diesel and P13.29 per liter for kerosene.
Reuters reported that as of Friday, Brent crude fell 3.2 percent to settle at $42.66 a barrel while US West Texas Intermediate went down by 3.9 percent to end at $39.77 a barrel.
It noted that prices were mainly affected by the extended declines in the US equities market and slowdown in the employment in August .
John Kilduff, a partner at Again Capital in New York, said a stimulus is needed in order to see more economic activity to restore demand for fuel.
Earlier, Russian energy minister Alexander Novak, said global oil demand could fall by 9 to 10 million barrels per day this year due to the pandemic which could offset the desired effects of the record supply cut being implemented by the Organization of the Petroleum Exporting Countries and its allies.