Local oil companies will slash prices of diesel by P1.75 a liter, of kerosene by P2 a liter and of gasoline by 75 centavos a liter effective today (Sunday).
Pilipinas Shell Petroleum Corp., Petron Corp., Seaoil Philippines, Chevron, Eastern Petroleum Corp. and Phoenix Petroleum cited the downtrend in the prices of fuel products in the global oil market for the latest oil price adjustments.
Prior to today’s reduction, the net increases in diesel prices stood at P7.05 a liter, and gasoline at P6.47 a liter. As of June 21, diesel retailed for P44.20 to P48.45 a liter, while gasoline prices ranged between P50.90 and P57.82 a liter.
The price decline, however, may be temporary as there are a number of factors seen to push oil prices back up, according to the June 21 oil monitor report of the Department of Energy.
International analysts believe there are other considerations that may push oil prices up, including the expected rise in demand mainly in non-OECD (Organization of Economic Cooperation and Development) countries, and concerns over the crude oil supply, the report said.
The DoE also cited International Energy Agency (IEA) chief economist Fatih Birol as noting that China, India and the Middle East were the Asian giants that were driving the global energy demand.
“They are responsible for more than 90 percent of the growth in global energy demand,” Birol said.
The IEA is looking at 1.3 percent annual demand growth for the next five years, with 41 percent of that demand coming from China alone. Thus, the Organization of Petroleum Exporting Countries will need to produce more oil in order to meet demand this year.
Oil prices, the DoE added, were also getting pressured by the unsettled Greece bailout, and fears of contagion through the eurozone.