Oil firms to cut gas prices this week

MANILA, Philippines — Oil companies will roll back pump prices this week as petroleum prices in the international market dropped in the past trading week.

In an advisory yesterday, Unioil said motorists should expect diesel prices to go down by 10 to 15 centavos per liter and gasoline by 25 to 35 centavos.

Oil prices were down for most of the week, dragged down by concerns over the US-China trade war, which increased US crude inventories and the slowdown of China’s economic growth.

Prior to the upcoming price adjustments, local oil firms increased gasoline prices by 25 centavos per liter, but rolled back diesel and kerosene prices by 10 and 40 centavos, respectively.

These drove year-to-date adjustments to stand at a net increase of P5.86 per liter for gasoline, P4.12 for diesel and P1.21 for kerosene, according to Department of Energy (DOE) data.

During a Cabinet meeting last week, Energy Secretary Alfonso Cusi proposed a review of the Downstream Oil Industry Deregulation Act of 1998 to ensure transparency in oil prices.

The DOE presented to the Duterte Cabinet the response of oil companies following the show cause orders (SCOs) issued by the agency on 13 oil firms and liquefied petroleum gas suppliers to explain their recent price rollback.

The DOE will reportedly issue SCOs to 23 gas stations in Baguio City, which increased oil prices by as much as P9.

In line with the agency’s mandate to protect consumers and ensure fair oil industry practice, the SCOs were issued amid the difference in oil price rollback calculations between the DOE and oil firms.