The so-called Big 3 and some new players in the local oil industry cut pump prices of gasoline by a uniform 35 centavos per liter effective today.
Energy Secretary Vincent Perez hailed the latest fuel price reduction despite possibilities that world crude prices will go up as an offshoot of production cuts that may be implemented by the Organization of Petroleum Exporting Countries (OPEC).
"This is a good measure to start the new year," Perez said.
It was also held likely, however, that the relief could be short-lived as the major industry players — Pilipinas Shell Petroleum Corp., Caltex Philippines and Petron Corp. — will raise their prices next month.
Since September, the local oil companies have implemented at least 10 price rollbacks for an average total of P2.19 per liter for gasoline and P1.71 per liter for diesel.
The firms clarified that the latest oil price slash reflected the decline in world crude prices last month.
Perez said the average price of Dubai crude oil already went up last month to $17.83 per barrel from the November figure of $17.67.
World crude oil prices moved up this month as a result of OPEC’s decision to cut down production by two million barrels a day.
"The first trading days of the year have shown crude oil prices increasing from the December average of $17.90 per barrel to P19.15, an increase of $1.25. We will be watching this closely," said Shell spokesman Reynaldo Gamboa.
He ruled out, however, the possibility that fuel prices would go up in the next few weeks. "We are quite confident that our local price levels (would) allow some level of comfort at least for the whole month of January," he said.
Apart from the Big 3, the other companies that rolled backed their pump prices were Seaoil Petroleum Corp. Flying V and Totalfinaelf Philippines Inc. (Total)
The Department of Energy estimated that a jeepney driver would earn additional income of as much as P3,000 a month due to the series of rollbacks of fuel prices by as much as 40 centavos per liter by the end of the week.
He said the public should not expect any price increase until after next month.