Oil firms to cut gasoline price, increase diesel rate Tuesday
MANILA, Philippines — Oil firms are implementing mixed changes at the pump Tuesday with a price rollback for gasoline and an increase for diesel amid continuing diplomatic talks in Syria and concerns of demand weakness in the U.S., where a budget standoff shut non-essential government services.
Top oil players Shell, Petron, and Chevron announced on Monday, a cut in gasoline prices by P0.55 per liter and an increase in the price for diesel by P0.35 per liter, effective Tuesday morning. PTT Philippines, Seaoil, and Eastern Petroleum have decided on similar price movements, also effective on Tuesday morning. All price changes will be VAT inclusive.
Shell and Chevron are implementing price changes from 12:01 a.m. on Tuesday, while Petron, PTT, Seaoil, and Eastern Petroleum will make the adjustments from 6 a.m. Tuesday.
The adjustments reflected movements in the international oil market, the companies said in separate advisories.
Most of the Philippines’ fuel supply is imported, making the commodity vulnerable to international price trends. This is also why oil players tend to track each other’s price movements.
Including the price movements this week, year-to-date net increase in major products gasoline and diesel are at P0.59 per liter and P2.18 per liter, respectively.
Article continues after this advertisementThe Department of Energy said in its Oil Monitor report that among the factors in recent price cuts for gasoline included diplomatic progress between U.S. and Russian officials wanting to agree on how to strip Syria of chemical weapons (easing traders’ worries of a potential U.S. military strike), Iran’s apparent inclination to settle its ongoing standoff with the West on its nuclear program (raising the chance of more Iranian oil sales after years of sanctions), and rising oil supplies from Iraq and Libya.
Reports have also cited the dragging U.S. budget standoff, which has kept non-essential services — such as the Energy Information Administration monitoring — frozen, as a signal for softer gasoline prices.
