Another big-time oil price rollback bared

MANILA, Philippines — Fuel prices are expected to be rolled back for the eighth consecutive week, led by Phoenix Petroleum Philippines Inc., amid continued concerns on oversupply in the international market.

In a text advisory, Phoenix Petroleum said it implemented a P2 per liter decrease on gasoline and diesel prices starting at noon yesterday. This is to provide motorists with cheaper fuels for the long weekend.

Meanwhile, Unioil Philippines said its fuel prices would be rolled back by P2.20 to P2.40 per liter for diesel and by P1.90 to P2 per liter for gasoline next week.

Other oil firms have yet to announce their respective price reductions next week.

Based on the Department of Energy (DOE)’s oil monitoring, the fuel price reduction is still due to the perceived oversupply in the international market, DOE-Oil Industry Management Bureau assistant director Rodela Romero said.

Among the factors for this are the 3.6-million-barrel increase in commercial crude inventories last week; increase in US interest rates which strengthened the US dollar and uncertainty over the US-China trade war; and signs of increased global crude production.

Prior the implementation of the new round of price cuts, local oil firms have rolled back gasoline prices by around P9.10 per liter, diesel prices by P8.40 per liter and kerosene by around P7.10 per liter for seven successive weeks.

Yesterday, Petron Corp. said it rolled back Gasul and Fiesta Gas prices by P6.40 per kilogram or P70 per 11-kilogram tank. It also reduced AutoLPG prices by P3.50 per liter at the same time.

Solane also lowered its LPG price by P6.36 per kilogram while Eastern Petroleum slashed the price of its EC Gas LPG by P6.50 per kilogram or P71.50 for an 11-kilo cylinder.

This is based on the pricing of Saudi Arabia’s state-owned oil company Saudi Aramco, which sets an international price benchmark at the beginning of each month and is being tracked by local retailers.

Saudi Aramco set its December contract price for propane at $445 per metric ton (MT), significantly lower than $540 per MT the previous month.

Despite the rollbacks in fuel prices, senators maintained that the government must pursue the suspension of the implementation of the second round of fuel excise tax hike next year as inflation remains high at 6.7 percent.

Sen. Aquilino “Koko” Pimentel III said economic managers could not yet explain the cause of inflation.

“We’re calling for the postponement of the implementation of the second round of excise tax in oil, which is an effort to control inflation. Let’s see its effects on inflation,” Pimentel said in an interview over radio dwIZ.

Although unsure, the senator said they are “suspecting” oil prices as causing inflation, but they want to give time to confirm their “theory.”

Pimentel and Sen. Sonny Angara, chairman of the Senate committee on ways and means, had earlier said the country’s economic managers should first roll out safety nets for the poor and find ways to temper further increases in the prices of basic goods before they even think of pushing ahead with the second round of fuel excise tax hike next year.

Pimentel, who had earlier filed a resolution seeking to suspend the second round of fuel excise tax hike, warned that the inflation rate may spiral out of control if the government will not initiate measures to address it. – With Cecille Suerte Felipe