by Myrna M. Velasco
Pump prices are up for hefty rollbacks this week, with kerosene and diesel having the bigger cuts at P1.20 per liter and P1.10 per liter, respectively.
The cost of gasoline products has also been pared by P0.80 per liter, according to the advisory of the oil companies.
As of press time yesterday afternoon, the players that already announced price reductions include Pilipinas Shell Petroleum Corporation, PTT Philippines, Flying V, Eastern Petroleum, and leading oil player Petron Corporation.
Price adjustments are effective either 12:01 a.m. or 6 a.m. Tuesday, depending on the notice that the oil companies had sent to their dealers and retail networks.
The cost reductions being reflected at domestic pumps are based on swings of prices in global markets.
Petron, for its part, has emphasized that this latest price rollback “reflects movements in the international market.”
Despite previous agreement on production cuts between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC counterparts, the price of oil in the world market had remained depressed for some time.
Just for the month of March alone, this is already the third rollback that has been implemented in the Philippine market – owing generally to price softening globally.
Russia, for its part, has committed on full compliance to its 300,000 barrels per day output cutback by end of March until early April, but it remains to be seen how this will impact eventually on the market’s pricing dynamics.
Meanwhile, Reuters reported from Singapore that oil prices fell on Monday, with already-bloated markets pressured by rising U.S. drilling activity and steady supplies from OPEC countries despite touted production cuts.
Prices for benchmark Brent crude futures were 35 cents, or 0.68 percent, below their last settlement at 6:46 GMT (2:46 p.m. PH time), at $51.41 (about P2,580) per barrel.