Oil companies poised to cut pump prices

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PRICES of petroleum products are expected to be rolled back this week.

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According to industry sources, oil firms may lower prices of gasoline by 40 to 60 centavos per liter.

They are also expected to reduce prices of diesel by 10 to 20 centavos per liter.

Kerosene prices are expected to be lowered by 30 to 40 centavos per liter.

The expected rollback is primarily driven by continued decrease in prices of petroleum products in the world market.

Oil companies usually make the formal announcement on price adjustments every Monday, with the changes taking effect on Monday evening or the following day.

Industry players earlier said prices of petroleum products are seen to be in the downward trend for the rest of the year up to the first month of 2016.

Danilo Alabado, PTT Philippines general manager, said this is driven by perceived oversupply of petroleum products.

He cited the failure of Organization of the Petroleum Exporting Countries (OPEC) to have a consensus on how to manage supply.

Because of this, Alabado said, immediate reaction of OPEC member-countries is to cut production.

He noted that crude is 50 to 60 percent lower now as compared to the average of 2014.

Raymond Zorilla, Phoenix Petroleum assistant vice president for external affairs, shared Alabado’s view.

He said the downward trend in prices of petroleum products will continue unless OPEC decides on how to manage supply.

For the month of December alone, local oil firms have already reduced pump prices for three consecutive weeks.

They rolled back prices of diesel products by a total of P3.70 per liter, P3.35 per liter for kerosene and 50 centavos per liter for gasoline.

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