Oil firms cut pump prices; gas by P0.75, diesel by P0.50

by Myrna Velasco November 23, 2015
http://www.mb.com.ph/oil-firms-cut-pump-prices-gas-by-p0-75-diesel-by-p0-50/

Prices at the pumps have been rolled back this week by P0.50 per liter for socially sensitive diesel; and a heftier P0.75 per liter for gasoline products.

The price of kerosene, which is generally used by poorer households for lighting as well as base for aviation fuel, had also been cut by P0.80 per liter, based on the pricing advisory of the local oil companies.

They noted that this week’s price adjustment will be effective 12:01 a.m. Tuesday (November 24); while some players opted to enforce it at 6:00 a.m.(the same day).

As of press time, the oil companies that advised on their reduced pump prices include Petron Corporation, Pilipinas Shell Petroleum Corporation and Seaoil Philippines.

For Shell, it diverted a bit from this batch of price movements as its reduction for diesel had been leaner at P0.45 per liter; as well as for gasoline at P0.65 per liter.

Petron has reiterated that this week’s cuts in pump prices had been to “reflect movements in the international oil market.”

There had been relentless softening of global oil prices due to widely believed glut in supply that cannot just be propped by decision of some oil-producing countries, including the Organization of Petroleum Exporting Countries (OPEC) to cut on quotas.

In fact, as could be gleaned from analysts’ forecasts, prices in the world market may just be in for another round of precipitous slide – similar to the phenomenon that had struck the industry last year.

They noted that the rock bottom price that must be hit this year could at $20 to $40 per barrel range.

The so-called “mega-glut” in supply cannot be overcast by recently reported downtrend in rig counts in the United States market – which portends of probable tapering production.

The events of recent years in the oil market are considerably diversion from the traditional scenarios wherein winter season had always been high-demand months for oil that were then pulling up global prices.