Oil firms announce another price cut

Oil companies yesterday announced another round of oil price adjustment, marking the second consecutive week of price cuts.

Effective today the price per liter of gasoline is cheaper by 85 centavos, kerosene by P1.10 and diesel by 90 centavos.

Pilipinas Shell Petroleum Corp. was the first to announce the rollback, followed by Petron Corp., the country’s biggest oil refiner.

Independent oil players also issued similar advisories.

“The following rollbacks will be implemented effective 12:01 a.m. of Jan. 13: Gasoline by P0.85 per liter, kerosene by P1.10 per liter and diesel by P0.90 per liter. This reflects movements in the international oil market,” Petron and Seaoil Philippines said in separate statements.

Based on the Jan. 8 oil monitoring report of the Department of Energy (DOE), crude prices decreased by about $2 to $3 a barrel last week, as labor unrest in Libya was resolved.

“Libyan El Sharara oil field with 330,000 barrel per day is expected to resume normal output early this month, which would soften demand. Labor unrest has disrupted Libyan oil exports, cutting crude supplies to Europe and boosting global oil prices,” the DOE report said.

The energy department said oil production in Libya has plunged to about 250,000 barrels a day from nearly 1.5 million, amid demand from armed protesters for a more regional autonomy and greater say over the distribution of oil revenues.

Other factors include the slowdown in Chinese manufacturing growth and the improving economy in the US.

“While a reading above 50 indicates growth, the recent data on HSBC China Manufacturing Purchasing Managers’ Index that fell to 50.5 in December from 50.8 in November is also weighing on the market,” the report said.

With the latest price cut, diesel prices now range from P40.85 to P45.70 per liter and gasoline at P49.15 to P55.45 per liter.