Oil firms cut gas price by 75¢

MANILA, Philippines - Petron Corp., Pilipinas Shell, Eastern Petroleum and Seaoil will cut their gasoline and diesel/kerosene prices by 75 centavos and 25 centavos, respectively, effective today due to the drop in international oil prices.

The Department of Energy (DOE) had already anticipated the price cut even before it was announced.

Energy undersecretary Jay Layug said some oil companies have already sounded off plans to cut their prices by 20 to 80 centavos.

“Flying V informed us that they will cut prices by 20 to 80 centavos,” he said.

According to Layug, domestic petroleum prices are greatly influenced by international price movements.

He noted that there are some developments in China and in the US that are seen to impact on local oil prices.

President Aquino has directed the DOE to monitor closely the continuing rise in oil prices.

There was also an effort last week from Malacañang to persuade oil companies to help cushion the impact of the continuing rise in domestic petroleum prices.

After a meeting in Malacañang last Friday, Shell has confirmed the implementation of its diesel discount program for jeepney drivers.

Petron and Shell said they will carry out the P1 per liter discount on diesel products for public utility vehicles, particularly jeepneys, in selected areas in the country.

Layug said Chevron is also planning to give out similar diesel discounts to the transport sector.

Before the price reduction, diesel sold at P39.45 to P41.60 per liter while gasoline prices ranged from P46.20 to P53.52 per liter.