"We have seen the benefit of oil deregulation in terms of successive price reductions, which have totaled six so far since September. Market forces have always dictated the price movements and they would continue to do so," Petron president and chief executive officer Motassim A. Al-Ma’ashouq said.
Shell outgoing chairman Oscar S. Reyes, for his part, said they are not likely to move their prices this month but might carry it out in the early part of January.
"As of now, the latest Dubai crude oil price is around $18 a barrel and average to date is about $17.60 and the foreign exchange about P52 to a dollar. Using the rule of thumb of a reduction of 32 centavos per liter for every decrease in the per barrel price of crude, and 12 centavos per liter for every peso appreciation, then there is still room for some reduction in the order of about 30 centavos. But we may see that happening in January," Reyes said.
But Petron and Shell said they are willing to be competitive if other players in the market make some price adjustments.
"The plans are always quite fluid depending on the latest assessment of markets. If there is a compelling case whereby crude prices weakened and the foreign exchange rate stays where it’s at, there might be a case made. We have to be very keen listeners of market signals," Ma’ashouq said.
According to Reyes, they will continue to monitor the market, particularly the movement of crude prices in the international front.
"I think we would watch the market. But if someone moves, then we would move. As far as we are concerned, we’ve done 11 adjustments in 2001 and just since October, we’ve already done six consecutive decreases totaling P1.84 on our gasoline prices and about P1.46 on diesel oil," Reyes said.
Consumer Oil and Price Watch chairman Raul T. Concepcion said that after the 30-centavo per liter price reduction on Dec. 18, the oil companies still owe the consumers 17 centavos a liter representing the balance for the month of October and 67 centavos for November.