Consumers buffeted by rising prices will get a breather this week as oil companies roll back pump prices by as much as P2.50 per liter on Tuesday, and as power rates continue to decline.
To reflect the movement of prices in the world market, oil companies said they would cut the price of kerosene by P2.50 per liter, diesel by P2.20 per liter, and gasoline by P2.10 per liter.
Meanwhile, the Manila Electric Co. (Meralco) said consumers will see lower rates this month after its overall rates for a typical household went down by P0.2087 per kilowatt-hour (kWh) to P9.5458 per kWh from P9.7545 per kWh last month.
This is equivalent to around P42 in the total bill of a residential customer consuming 200 kWh.
This followed the reduction of P0.7067 per kWh in the total rate of a residential customer with 200 kWh consumption in July.
“Phoenix Petroleum Philippines will decrease the prices of diesel by P2.20 per liter and gasoline by P2.10 per liter effective 6 a.m. of Aug. 9, 2022,” the company said in its advisory.
Petron, Seaoil Philippines, Cleanfuel, Chevron Philippines, and PetroGazz issued separate price cut announcements.
World oil prices have been declining in the past weeks due to US recession fears that could significantly affect oil demand.
Crude prices also fell as COVID-19 cases increased in China, coupled with a seasonal buildup in gasoline inventories in the US.
The decision of the Organization of the Petroleum Exporting Countries (OPEC) for a limited increase in production also lowered the world oil price.
On Aug. 2, the oil companies cut diesel prices by P0.60 per liter and kerosene by P0.75 per liter but raised the price of gasoline by P0.75 per liter.
These resulted in the total year-to-date net increase of P19.65 per liter for gasoline, P32.35 per liter for diesel, and P27.30 per liter for kerosene.
Meralco spokesman Joe Zaldarriaga said Meralco rates declined by a total of P0.9154 per kWh over the past two months and a net decrease of P0.2315 per kWh since the start of the year.
Meralco’s generation charge went down by P0.1944 to P6.5812 per kWh in August from P6.7756 per kWh last month due to the decrease in costs from power supply agreements (PSAs).
The lower PSA rates more than offset increases in charges from independent power producers (IPPs) and the Wholesale Electricity Spot Market (WESM), the trading floor of electricity.
PSA charges registered a reduction of P0.4273 per kWh as this month’s rate no longer included recovery of deferred generation costs for the April bill.
Meralco said the higher excess energy of some PSAs, priced at a discount, also contributed to the decrease.
Meralco sourced 52 percent of its power requirement from the PSAs last month.
The IPP charges increased by P0.4213 per kWh with the continued rise in international fuel prices.
The Malampaya natural gas price increased by 15 percent starting this quarter, reflecting recent spikes in world crude oil prices.
Power suppliers that have pass-through adjustments in Malampaya fuel—namely, First Gas-Sta. Rita, First Gas-San Lorenzo, and First Natgas-San Gabriel—accounted for 44 percent of Meralco’s supply during the period.
Meralco said the reduced use of more expensive alternative fuel by First Gas plants mitigated further increases in IPP charges.