Meanwhile, the Consumer Oil and Price Watch (COPW) predicted a bigger reduction of P1 per liter next month.
Citing the sudden drop in crude prices in the world market, Shell reduced on Tuesday its pump prices by the same amounts.
"Factors affecting prices include supply, demand, competition and the local marketplace. These pressures are currently impacting prices globally," Caltex said in a statement.
It said Caltex, a Chevron-Texaco company, will continue to monitor market conditions closely, and make adjustments to its prices accordingly to ensure that it continues to price its products and services "independently and competitively."
"Caltex is committed to remaining open and transparent regarding price adjustments. It will continue to stay closely attuned to market and competitive conditions," the statement said.
"Caltex will accurately reflect these conditions by adjusting prices up or down in smaller amounts, more frequently if necessary, with the frequency dictated by changes in market and competitive conditions. This will help cushion consumers from sudden big swings in prices," the company said.
Major players Petron Corp. and Pilipinas Shell Petroleum Corp. rolled back the other day prices of their gasoline products, diesel and kerosene by 25 centavos per liter as world crude prices weakened.
Even new players Unioil, Flying V, Seaoil, Total Petroleum Corp. and Eastern Petroleum Corp. have also reduced their prices.
While Flying V’s reduction was the same as that of Petron and Shell, Unioil will implement a 25-centavo price cutdown on all its products.
"I expect the oil firms to give a one-time Christmas gift on or before December 16. It’s better if it is given in one blow," COPW chairman Raul Concepcion said.
"Since they have already advanced 20 centavos this month, we can expect about P1 per liter reduction next month," Concepcion said in a press briefing.
Dubai crude prices went down by as much as $3, from $26.32 in end-October to $23 per barrel in mid-November. On the other hand, the peso depreciated by 80 centavos.
"Even if the peso depreciates further, local crude prices are expected to drop by P1 per liter unless there will be an untoward event that will happen between now and next month," Concepcion pointed out.
He noted that should the price of crude go up in December, this will be reflected in the local front in January next year. There is a one-month lag before oil firms can recoup their under-recoveries.
With the price cut, the suggested retail price of Petron’s unleaded premium is now P18.39 per liter. Other Petron products can also be bought lower — XCS plus at P19.05, kerosene at P14.79 and diesel at P14.89.
"Theoretically, the reduction in prices should have been reflected in December but we decided to implement it at once," Shell external affairs manager Robert Kanapi said.
Petron corporate communications manager Virginia Ruivivar also said the company’s decision was prodded by competitive pressures. –Donnabelle Gatdula