MANILA, Philippines—Local fuel prices are coming down for a third straight week as oil supplies remain above demand in the international market.
AP FILE PHOTO
In separate advisories, Petron and Seaoil said they would cut fuel prices effective 12:01 a.m. Sunday by P1.20 per liter for gasoline, P1.55 for diesel and P1.60 for kerosene.
PTT Philippines said it would make similar price adjustments at the same time but only for diesel and gasoline since it did not sell kerosene.
“These reflect movements in the international oil market,” said Petron, the country’s top oil player.
Shell, another major oil firm, is adjusting its prices also at 12:01 a.m. but with a smaller price cut for gasoline. Shell said in an advisory it would roll back gasoline prices by P1.10 a liter, diesel by P1.55 and kerosene by P1.60.
Other local oil firms had not made their formal announcements but were expected to make similar prices adjustments since most of the fuel products sold in the Philippines are imported and thus vulnerable to the same supply-demand and foreign exchange forces.
The year-to-date total adjustment for gasoline was at a net decrease of P3.48 per liter, while for diesel it was at a net decrease of P5.70 per liter.
Analysts said global supply continued to swell as the United States imported less oil and relied more on domestic production.
A strong US dollar (which makes buying commodities cheaper) and lower demand from other fuel-guzzling economies was also keeping the downward pressure on oil prices.
Industry observers said the global benchmark Brent crude had not come back up to the $100-per-barrel level since June amid demand uncertainty.
This would likely be a key point at next month’s meeting of the Organization of Petroleum Exporting Countries, which so far seems divided on whether or not members should cut output.
RELATED STORIES
Fuel prices cut as concerns over supply eased