Diesel down, LPG up

MANILA, Philippines – Oil firms are rolling back diesel prices this week despite a brief weekend rally in prices on reports of a drop in US oil drilling, which raised the concern on future supply.

Petron, Shell and PTT Philippines have announced in separate advisories they will trim diesel prices by P0.30 per liter at 12:01 a.m. Tuesday, February 3, 2015. Phoenix Petroleum will adjust prices at 6 a.m.

The total adjustments to-date thus stands at a net decrease of P3.60 for gasoline and P4.15 for diesel.

Oil firms said the adjustment in diesel was mainly due to a stronger peso, which kept prices down despite a short price rally in the international market over the weekend on reports of decreased deployment of oil rigs in the US.

Meanwhile, cooking gas prices for the month increased on tighter supply, even though local firms can buy relatively more imports for their peso. LPG prices increased by P0.65 to P0.70 per kilogram and AutoLPG increased by P0.40/L for the month of February.

Petron Corp. and Eastern Petroleum Corp. increased the price of liquefied petroleum gas (LPG) by P0.70 per kilogram (kg.), VAT inclusive, on Sunday, February 1, 2015. The increase is equivalent to P7.70 per 11-kilo tank used by households.

Solane-branded LPG, meanwhile, increased in price by P0.65 per kg. (VAT exclusive) from 6a.m., February 1.

“Petron will increase LPG prices (VAT inclusive) by P0.70 per kg effective February 1. Auto LPG will likewise increase by P0.40 per liter at the same time,” Petron said in an advisory earlier. “These reflect movements in the international contract price of LPG for February.”

LPG in Metro Manila retailed from P490 to P660 per 11-kilo tank prior to this latest adjustment.

In January, Petron cut LPG prices by P5.50 per kilogram and autoLPG by P3.44 per liter.

The country’s dominant oil firm also has the biggest share in the LPG market.