Fuel prices cut as concerns over supply eased

INQUIRER FILE PHOTO

MANILA, Philippines — Oil firms are rolling back fuel prices this week amid improved stockpiles globally.

Top firms Petron and Shell have announced they will roll back fuel prices by P0.75 (75 centavos) per liter for gasoline, P0.50 (50 centavos) per liter for diesel, and P0.50 (50 centavos) per liter for kerosene starting 12:01 a.m. on Tuesday, May 6.

Independent player PTT Philippines said it would also trim prices by P0.75 (75 centavos) per liter for gasoline and P0.50 (50 centavos) per liter for diesel starting on the same date.

This reflected movements in the international oil market, the oil firms said.

Including the price adjustment this week, the year-to-date total adjustments stand at a net decrease of P0.55 (55 centavos) per liter for diesel and a net increase of P0.10 (10 centavos) per liter for gasoline.

Over the weekend, industry sources said there were indications that domestic oil prices might be cut by “P0.70 per liter on gasoline” and “P0.35 to P0.45 per liter” on diesel, amid increased crude stockpiles as Libya has been poised to increase exports following production resumption of its terminal facility previously captured by rebels.

Sources cited reports that Libya’s National Oil Corp.’s exports have reached 285,000 barrels a day from 230,000 barrels a day in the first half of April. Expanded U.S. crude output and milder-than-expected sanctions on Russia also helped soften demand, they said.

“Nonetheless, there’s still mixed reaction in the market with majority projecting continued weakness while others deemed that prices may rebound by next week. The continued unrest in Ukraine which is feared to disrupt supply from Russia may be a key factor affecting price behavior next week,” one of our sources said.

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