Roll Back on Oil Price Continues Until 2008 Year Ends
The Energy department on Tuesday said consumers can expect more pump price cuts as the year ends due to the continued softening of world oil prices.
This after independent industry participant Seaoil Philippines, Inc., said it has cut prices by P2 per liter for diesel, and P1 for gasoline and kerosene as of 2 p.m. Tuesday, bringing its diesel price to P35.98/liter, unleaded gasoline to P38.50 and premium gasoline to P40.
Eastern Petroleum Corp. Chairman Fernando L. Martinez said they will be matching the lower prices in Eastern Petroleum outlets near Seaoil service stations.
Other oil firms have not advised of price adjustments.
“We welcome the recent rollback of Seaoil. We expect other oil companies will soon follow suit and we expect more to come before the year ends. The DoE (Department of Energy) will continue to monitor and ensure that the local pump prices promptly reflect the price movements of oil in the international market,” Energy Secretary Angelo T. Reyes said in a statement.
“We are now seeing a fall in world oil prices as countries around the world is feeling the effects of the global credit crunch. This has resulted in the dampening of demand for oil which is further putting downward pressure on prices,” he added.
The benchmark Dubai crude average as of Monday was $51 per barrel from the October price of $67. Imported diesel went down to $75 from $89, while imported gasoline was at $50 per barrel from last month’s $80.
The average price cut for November is P3/liter for diesel and P4/liter for gasoline. Price reductions have totaled P21.50 and P20.50 per liter for diesel and gasoline, respectively.
Oil companies have been cutting fuel prices since July after oil prices, which reached a peak of $140 per barrel for Dubai crude, have drastically gone down due to the slowdown in the global economy.
The Energy department said with low gasoline prices, the government will maintain the 3% oil tariff for December.
The oil tariff was slowly phased out until crude prices went above $103 per barrel.
The scheme was institutionalized by the Palace early this year to cushion the impact on domestic pump prices.
Meanwhile Executive Secretary Eduardo R. Ermita in a radio interview Tuesday said oil firms should be compelled to lower their prices as the Christmas season approaches.
He added he has directed the Energy department and the National Economic and Development Authority to coordinate and monitor pump prices.
Courtesy of GMA News
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