Big 3 roll back oil prices by P1

BY JOHN LOURENZE POQUIZ

THE Big 3 oil companies reduced prices of diesel, kerosene, and gasoline by P1 a liter starting 12:01 a.m. today.

The price cuts of Pilipinas Shell, Petron Corp. and Chevron followed those announced earlier in the week by the small players following the continued drop of world crude prices to below $100 per barrel.

Eastern Petroleum, which announced a price rollback of 50 centavos per liter on diesel and gasoline last Wednesday, effected another 50-centavo cut at midnight.

"If the trend of decline in world crude prices continues, we can have further rollbacks for the weeks to come," said Petron spokeswoman Virginia Ruivivar.

On Wednesday, Dubai crude briefly fell to $92 per barrel, down by $55 or 37 percent, the lowest after it reached the all-time trading record of $ 147.27 on July 11.

Since August, gasoline and diesel prices have decreased by P9.50 per liter and P7.50 per liter.

With the latest price reductions, pump prices of premium unleaded gasoline now range between P51.25 and P52.85 a liter, diesel P48.95 and P51.09 a liter, and kerosene P53.36 and P56.80 a liter.

As of September 12, the Dubai crude average was pegged at $100.21 per barrel, which is lower than the August average of $112.86 per barrel.

Mean of Platts Singapore (MOPS) unleaded prices as of September 12 have gone down by $6.51 to $110.43 per barrel, from August average of $115.49 per barrel.

MOPS diesel during the period was pegged at $122.83 per barrel, $12.43 lower compared to the August average of $135.26 per barrel.

On Tuesday, Consumer and Oil Price Watch chairman Raul Conception projected that oil prices are likely to hold steady for the remainder of the year.

"There will be no price hikes if Dubai will be lower than $100 to $110 a barrel levels. This already took into consideration the peso depreciation. Between October and December, there will be no more escalating oil prices and we may even expect more rollbacks," Concepcion said.

Transport groups said a fare rollback will happen only if diesel prices drop to P45 per litter.

"Even if we want to have a fare rollback, we cannot. The oil price cuts the oil companies are implementing now are not enough," said Orlando Marquez, chairman of the Transport Alliance Coalition.

Senate majority leader Francis Pangilinan asked the public to boycott the Big 3 for delayed reduction in their prices.

"Bistado na sila. Nung nagtataas sila ng presyo, ang dahilan nila ay ang biglaang pagtaas ng presyo ng langis sa pandaigdigang merkado. Bakit ngayong biglaan at nakagugulat din ang pagbaba ng presyo sa pandaigdigang merkado, hindi nila magawang magbaba din ng biglaan?" Pangilinan said.

He added: "If the small players can instantly lower prices to adhere to the world market, why can’t they? They should stop making excuses and just do what is right."

Pangilinan said there was "obvious collusion" among giant oil companies to delay lowering oil prices amid the plummeting of international costs. – With Dennis Gadil