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MANILA, Philippines – Fuel prices are going down for a third straight week as oil supply remains above demand in the international market.
In separate advisories, Petron and Seaoil said they were to cut prices effective 12:01 a.m. Sunday (October 12) by P1.20 per liter for gasoline, P1.55 per liter for diesel, and P1.60 per liter for kerosene.
PTT Philippines said it would also adjust prices similarly at 12:01 a.m. but only for diesel and gasoline since it did not carry kerosene.
“These reflect movements in the international oil market,” Petron, the country’s top oil player, said.
Shell said it was to roll back the price of gasoline by P1.10 per liter also effective one stroke after midnight Saturday. It was to slash the price of diesel by P1.55 per liter and the price of kerosene by P1.60 per liter.
Other firms made no formal announcements but were expected to adjust prices similarly since most of the fuel products in the Philippines are imported and are thus subject to similar supply-demand and foreign exchange forces.
The latest price changes would bring year-to-date total adjustment for gasoline to a net decrease of P3.48 per liter while the price of diesel would reflect a net decrease of P5.70 per liter.
Analysts said global supply continues to swell as the US imports less and relies more on domestic production. A strong US dollar (which makes buying commodities cheaper) and lower demand from other fuel-guzzling economies were also keeping downward pressure on oil prices.
Industry observers said the global benchmark Brent crude has not come back to the $100-per-barrel level since June amid demand uncertainty.
This will likely be a key point at next month’s meeting of the Organization of the Petroleum Exporting Countries, which so far seems divided on whether members should cut output, the observers said.
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