MANILA, Philippines – For the ninth consecutive week, local oil companies are cutting prices of petroleum products effective Saturday as a result of the continued drop of oil prices in the international market.
Pilipinas Shell Petroleum Corp. and Unioil Petroleum Philippines are reducing the prices of kerosene and regular gasoline by P2 a liter and of unleaded gasoline and diesel by P1.50 a liter.
Other oil companies are expected to follow suit.
Prior to Saturday’s rollback, prices of gasoline ranged from P48.75 a liter to P56.27 a liter, while diesel prices hovered between P41.10 a liter and P53.05 a liter.
As of June 4, the year-to-date net increase for gasoline stood at P1.13 a liter, while diesel posted a net decrease of P1.36 a liter in its prices since the year started.
According to the Department of Energy’s oil monitor report, the continued decline in fuel prices can be attributed to ongoing concerns about the health of the global economy given the impact of euro zone crisis on fuel demand, increased jobless rate in the US and slowdown in China’s manufacturing sector.
The DOE cited news reports that oil prices have “plunged by about two-thirds since reaching record highs in July 2008, pulled down by a widening global economic slowdown that weighs on demand, reducing income for oil producing countries.”