THE country’s oil firms implemented a hefty price rollback of as much as P1.20 per liter effective 6 a.m. Tuesday to reflect the movement of world oil prices.
The oil firm cut the price of kerosene by P0.120 per liter, diesel by P1.10 per liter and gasoline by P0.80 per liter.
Melita Obillo, Energy department director for the Oil Industry Management Bureau, said there was ample supply of oil products in the global market.
“Ample supply. Gasoline in excess supply and limited demand. There is a growing shale production in the US,” Obillo said.
Other factors that led to the rollback includes high compliance of the Organization of the Petroleum Exporting Countries’ to production cuts at 95 percent in February from 91 percent in January, increase in US oil rig count, among others.
“Petron will implement the following price rollbacks effective 6 a.m. March 21: P0.80 per liter for Blaze 100 Euro 5, XCS, and Xtra Advance, P1.10 per liter for Turbo Diesel and DieselMax and P1.20 per liter for kerosene,” the country’s biggest oil player said.
Aside from Petron, Pilipinas Shell Petroleum Corp., PTT Philippines, Seaoil Philippines, Phoenix Petroleum Philippines, Flying V, Eastern Petroleum, and other oil firms announced their respective price cuts.
Reports from the International Energy Administration that demand could ease this year also pushed back prices in the world market.
Last March 7, the oil firms also cut gasoline prices by P0.55 per liter, kerosene by P0.20 per liter and diesel by P0.10 per liter.
The low oil prices also accounted for the 12.3 percent decline in the country’s net oil import bill reaching $6.78 billion for 2016 from $7.73 billion in 2015.