Publicly listed Petron Corp. initiated the rollback in response to the current downward movement in world market prices. Rivals Pilipinas Shell Petroleum Corp. and Caltex Philippines Inc., as well as new oil players Totalfinaelf Philippines Inc. (Total) and Flying V, immediately responded with similar adjustments.
The adjustments by the new players took effect last night.
Petron communications manager Virginia Ruivivar said the rollback — the second for the month of November and the fourth in four weeks — was in accordance with the company’s strategy to implement smaller price adjustments in more frequent phases.
"This adjustment confirms our desire to change our product prices more frequently. We are doing so to reflect the international market price in our own prices in a more timely manner," Ruivivar said.
It was the ninth time oil companies have reduced prices for refined petroleum products this year.
Caltex spokeswoman Marian Catedral said market forces "led us to adjust prices."
Total’s Rona Quejada said the rollback was implemented to pass on the benefits of current market situation to local oil consumers.
"We will continue to closely monitor the volatile movements of the world oil market, foreign exchange and current international situation. The company will accordingly respond to these indicators while trying its best to ease the financial burden on consumers when possible," Quejada said.
Last Nov. 8, the oil firms cut prices by an average 31 centavos per liter. In October, they rolled back prices by 30 centavos twice.
Shell corporate communications manager Reynaldo Gamboa said today’s latest rollback completes more than a P1 decrease for the month of October.
"This is basically in fulfillment of the expected price reduction for October, reflecting the continuing drop in crude prices in the world market," he said.
Consumer Oil Price Watch chairman Raul Concepcion earlier said the oil firms should lower prices by P1.28 per liter for the month of October. There is a one-month lag in the firms’ implementation of adjustments.
Gamboa said they are still studying if there could be further adjustments for November.
"We have to look at the market conditions before making further adjustments," he said.
Petron’s Ruivivar said the downward trend in crude prices may be only temporary.
"We cannot discount the possibility of renewed upward pressure on prices later this year with the winter demand for oil as well as the possible output reduction by OPEC (Organization of Oil Exporting Countries) by Jan. 1, 2002.
OPEC Exporting Countries (OPEC) is planning a cut in oil production by as much as 1.5 million barrels per day before the new year to boost weakening prices.
Average Dubai crude price as of Nov. 15 stood at P15.78 per barrel, down from the $19.63 in October and $24.53 in September.
Meanwhile, Sen. Teresa Aquino-Oreta asked local oil companies to effect heftier price cuts in fuel prices as their advance Christmas gift to the Filipino masa.
Oreta said the oil companies have now found themselves with no excuse to further delay price reductions in the pump prices of their products, considering OPEC reached agreement that there would be no reduction in global oil supply until the end of the year.
The senator said bigger price cuts in diesel, which is utilized by public utility vehicles, will pave the way for a reduction in jeepney and bus fares just in time for the Christmas season.
"These oil giants have now run out of excuses to delay further price reductions. As an advance Christmas gift to the Filipino people, they should immediately implement new price cuts that truly reflect the downward movement of crude prices in the world market," Oreta said.
OPEC countries concluded their Vienna meeting last Wednesday with a decision to defer output reductions until next year as they try to persuade non-cartel oil producers to support the cuts. This has helped maintain benchmark crude prices at below $19 per barrel.
"With this development, oil companies should immediately roll back fuel prices to their true levels as intended under the Oil Deregulation Law," Oreta said.