Oil firms cut prices

Local pump prices dropped for the seventh straight week as oil firms adjusted to the continuing oil supply glut in the world market.

In separate advisories, Shell and Seaoil announced the following price cuts: 40 centavos per liter for gasoline, 90 centavos per liter for diesel and 70 centavos per liter for kerosene.

Petron cut gasoline prices by 45 centavos per liter, 90 centavos per liter for diesel and 70 centavos per liter for kerosene.

Phoenix Petroleum, PTT Philippines and Total Philippines implemented a rollback of 40 centavos for gasoline and 90 centavos for diesel effective 6 a.m. Tuesday. These independent players do not retail kerosene.

Eastern Petroleum Corp. reduced gasoline and diesel prices by 50 centavos and P1 per liter, respectively, at 6 p.m. on Monday.

Since January 2015, the net increase for gasoline has been reduced further to P2.19 per liter. Diesel prices have so far had a net decrease of P3.39 per liter.

In a statement, Eastern Petroleum chair Fernando L. Martinez said the oversupply appeared to be continuing in August.

On Saturday, Eastern Petroleum reduced the price of EC Gas cooking gas by P1.10 per kilogram, or P12.10 for an 11-kg cylinder, to reflect the drop in the international contract price of liquefied petroleum gas.

“Global oil prices continued their downward trend at the end of last week’s trading. And the oversupply situation and continuous downward trend in world oil prices pressure local pump prices to go down further,” Martinez said.

Analysts believe world oil prices will rebound toward the end of the year to about $60-$69 per barrel (from the current $47), he said.