Local oil firms will roll back prices of liquefied petroleum gas (LPG) by P2.55 per kilo and auto LPG by P1.43 a liter starting today, as the Department of Energy projected pump prices of other fuel products to go down by as much as P3 per liter due to the softening of world oil prices.
In separate advisories, Petron and Solane said they reduced their LPG prices by P2.55/kg (VAT inclusive) effective October 1, at 12:01 a.m. for the former and 6 a.m. for the latter.
“These reflect the international contract price of LPG for the month of October,” Petron’s statement said.
Before the firms’ announcements, Rodela Romero, Director III of the Department of Energy’s Oil Industry Management Bureau, said LPG prices will go down by P3 per kilo “due to slower demand.”
Romero said gasoline and diesel prices may go down by less than P1 per liter while kerosene will also go down by “a little more than P1.”
She said this is based on the first four days of trading this week.
The demand for oil was dampened by the high interest rates imposed by the US Federal Reserve and European central banks.
Romero said the peso depreciation versus the dollar also affects pump prices.
The DOE said the oil demand outlook turned weaker on expectations of slower global economic growth as central banks hiked interest rates to bring down inflation.
Adding further downward pressure on oil prices was a 9.24-million barrel build in US commercial oil inventories in the week ended Sept. 16, as total product demand dropped to a 10-week low, citing data from the Energy Information Administration.
Demand from China and Japan also weekend. China’s consumption remains tempered due to strict COVID-19 controls, while the typhoon season in Japan is also expected to weaken demand.
On Sept. 27, the oil companies cut the price of gasoline by P1.65 to P1.75 per liter, diesel by P1.25, and P1.35 for kerosene.
These resulted in a year-to-date net increase of P14.85 per liter for gasoline, P29.40 per liter for diesel, and P24.10 per liter for kerosene.