Oil firms cut prices to reflect international trends

INQUIRER FILE PHOTO

MANILA, Philippines—Oil firms are adjusting prices for various fuel products to reflect trends in the international oil market, according to company officials.

Phoenix Petroleum Philippines Inc. said that as of 6 p.m. on Monday, it has decreased the prices of premium and unleaded gasoline by 75 centavos per liter. It would also trim prices of regular gasoline by 20 centavos per liter and diesel by 15 centavos per liter.

This, Phoenix Petroleum said, was due to the “softening” prices of refined petroleum products in the world market.

Big firms Pilipinas Shell Petroleum Corp. and Petron Corp. will also cut pump prices effective Tuesday at 12:01 a.m.

Shell will roll back prices for unleaded and premium by 75 centavos per liter, kerosene by 10 centavos, diesel by 15 centavos, and for regular gasoline by 20 centavos per liter.

Petron will trim prices for Blaze 100, XCS, and Xtra by 75 centavos per liter; for Pinoy Gasoline and Regular by 20 centavos per liter; and for Turbo Diesel and DeiselMax by 15 centavos per liter.

“This reflects movements in the international oil market,” the company said.

Seaoil Philippines Inc. also said it would reduce the prices of its premium and unleaded gasoline by 75 centavos per liter, diesel by 15 centavos per liter, kerosene by 10 centavos per liter, and regular gasoline 20 centavos per liter.

The Department of Energy’s (DOE) Oil Price Monitor report said that last week’s trades showed Dubai crude price was nearly $110 a barrel over the week due to the mixed signals from the US about the fiscal cliff program, the ongoing uncertainty about eurozone’s economic conditions and unrest in the oil-rich Middle East. The International Atomic Energy Agency’s latest report on Iran in November showed that despite sanctions pressure, Iran has continued to expand its capacity to enrich uranium to purities of 20 percent, which is close to the 90 percent mark needed for a weapon.

Specifically for diesel, Platts noted that sentiment in Asia stayed depressed ahead of the yearend, with soft demand and spot supply remaining healthy. Increased exports of diesel from China added to Asia’s bearish sentiment.

On the other hand, Asian gasoline market has been tightly supplied and strong demand from Indonesia would keep supporting prices until the end of the year, DOE said.

Week on week, Dubai crude decreased by 30 cents per barrel; gasoline likewise decreased by $1.70 per barrel. Diesel rose slightly by 30 cents per barrel.

In the week of Dec. 4, DOE said, most of the oil companies implemented a decrease of 60 centavos per liter for gasoline, 35 centavos per liter for regular gasoline and 40 centavos per liter for kerosene. There was no movement in the price of diesel. LPG companies also effected a rollback on LPG products by P1.84 per kilogram or P20.24 per 11 kilogram effective Dec. 1, 2012, due to a decrease of the contract price for December by $40 per metric ton to $968 per metric ton, from $1,008 per metric ton last month.