Oil firms to cut gasoline, diesel prices

MANILA, Philippines - Petron Corp., Eastern Petroleum Corp. and Flying V Petroleum Corp. will reduce the prices of their premium gasoline by 20 centavos per liter, regular gasoline by 40 centavos per liter and diesel by 80 centavos starting today.

The two other major oil companies – Chevron Philippines and Pilipinas Shell Petroleum Corp. – have not advised any price changes but are expected to make an announcement tomorrow.

Last week, pump prices of oil products increased three times, resulting in a P2.30 per liter increase for premium gasoline, P2 per liter for regular gasoline and P2.40 per liter for diesel and kerosene.

The energy department earlier hinted that prices of oil would be reduced as pressures on oil prices in the global market started easing Friday.

Reports that an embargo of Iranian oil by the European Union (EU) will not happen until summer brought oil prices down.

The prospect of reduced energy demand in the EU offset tight supply worries due to the turmoil in key crude producers Iran and Nigeria.

The eurozone is under pressure from debt worries, including the slowing growth in Germany and downgraded credit ratings of France, Austria and Italy.

Experts said geopolitical supply issues would continue to affect oil prices.

Besides the problem with Iran, the labor strikes in Nigeria is also an immediate concern.

Nigerian Oil Union threatened to shut down the country’s crude output, in protest of the removal of government fuel subsidies, which doubled local prices. Nigeria produces more than two million barrels per day and is a key oil supplier to the United States and the EU.