Oil firms cut diesel, kerosene prices

INQUIRER FILE PHOTO

MANILA, Philippines — The first oil price adjustment for 2014 rolled back diesel and kerosene prices, reflecting the impact of crude stockpiles in the international market.

Petron, Shell, Chevron and Seaoil said in separate announcements on Monday that they would implement price cuts on kerosene (by P0.25 per liter) and diesel (by P0.45 per liter) starting 12:01 a.m. on Tuesday, January 7.

Phoenix Petroleum Philippines announced similar price adjustments “to reflect the softer price of the (said) petroleum products” from 6 a.m., also on Jan. 7.

The Eastern Petroleum Group, on an aggressive expansion mode this year, announced a heftier rollback for diesel at P0.60 per liter starting 12:01 a.m., Jan. 7.

Other oil firms have not announced fuel hikes but generally, oil firms track each other’s prices as most of the fuel products in the Philippines come from imports.

Asked about the price cut, Eastern Petroleum chairperson Fernando L. Martinez said in a text message, “Crude supply was on the high side globally, forcing price to retreat.”

Prices fell last week as oil demand did not accelerate as quickly as expected while supplies remained sufficient, analysts said.

In the trading week of Dec. 30, 2013 to Jan. 3, 2014, traders waxed optimistic on oil supply from Libya as protests reportedly ended at one of the OPEC (Organization of the Petroleum Exporting Countries) member’s largest oil fields. Previously, groups of militias, tribesmen, and civil servants had seized key oil fields and ports in Libya as leverage for political and financial demands.

Speculation of a rising dollar amid expectations of a cycle of monetary tightening by the U.S. Federal Reserve (traditionally a headwind for commodities) was also seen to dent oil prices in this retail week. The U.S. Fed recently began winding its stimulus program, strengthening the greenback’s value and drawing investors away from oil.

A stronger dollar makes commodities (such as oil) that are priced in dollars more expensive for buyers using other currencies. With a report from Tetch Torres-Tupas/INQUIRER.net

 Originally posted at 03:50 pm | Monday, January 6, 2014