Gas, diesel, kerosene prices dip 95 centavos per liter Tuesday

AP FILE PHOTO

MANILA, Philippines—Oil firms are cutting pump prices again this week as global supply prospects brighten on optimism Libya can ramp up exports.

In separate advisories, Petron, Shell and Seaoil said they were cutting 95 centavos from the per-liter prices of their gasoline, diesel and kerosene beginning at 12:01 a.m. Tuesday.

Independent oil firm PTT is imposing similar price cuts but for gasoline and diesel only.

Other firms have not announced price adjustments but are expected to follow suit since most of the country’s fuel is imported and is vulnerable to price shocks.

The price cut is the second decline in a week for diesel and kerosene and the first for gasoline following three weeks of price hikes. Last week, diesel prices dropped 85 centavos per liter, while kerosene fell 95 centavos and gasoline remained unchanged.

For about a month now, supply concerns amid sectarian violence in northern Iraq have fueled price speculation even as Iraqi oil wells located in the southern region remained operational.

Including this week’s price movements, year-to-date adjustments stand at a net decrease of P2.65 per liter for diesel and a net increase of 80 centavos per liter for gasoline.

Libyan rebels have lifted blockades on shipping terminals, causing global oil prices to dive as traders reacted by selling more crude before further price cuts were imposed.

Indications that Iraqi oil fields remained largely unaffected by the sectarian violence that has gripped the nation also weighed down prices.

Meanwhile, demand remained steady from two weeks ago when anticipation of lower demand from the United States (the world’s top fuel consumer) amid weak consumption and jobs data helped soften global prices.

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