CONTINUING oversupply and doubts of a possible agreement to cut production between Russia and the Organization of Petroleum Exporting Countries caused domestic pump prices to fall by as much as P1.20 per liter.
The oil firms announced that they will cut the price of kerosene by P1.20 per liter, diesel by P1 and gasoline by P0.65 per liter starting 12:01 a.m. November 8.
The total year-to-date adjustments are now at net increase of P4.69 per liter in gasoline and P6.63 per liter in diesel.
Diesel sells from P26.40 to P29.97 while gasoline sells from P36.05 to P44.55 per liter. Prices vary depending on the brand, location and other market forces.
“There are two factors for the rollback. Oversupply and Opec seems to be in disagreement over the production cut,” Energy Department spokesman Felix William Fuentebella said.
Pilipinas Shell Petroleum Corp., Seaoil Philippines, Unioil Philippines, PTT Philippines, Eastern Petroleum and Flying V issued separate advisories of the price rollback early in the day.
The department cited reports that a growing number of Opec member have said they were unwilling or unable to cut, casting doubts on what the group could do when it meets in Vienna.
The department cited reports that production around the world will rise if there is no output deal agreed by Opec on its final meeting on November 30. Opec initially agreed to cut up to two percent of its output to curb oversupply and push up prices.