Oil price cut whopper: P2.70

Phoenix Petroleum Philippines implemented Saturday a big-time oil price rollback of P2.70 per liter for diesel and P2.60 per liter for gasoline to reflect the movement of prices in the world market.

“For the 3rd straight week, Phoenix Petroleum Philippines will implement an early big decrease in the prices of gasoline by P2.60 per liter and diesel by P2.70 per liter effective 6 p.m. of 08 June,” the oil player said.

READ: Phoenix cuts oil prices by P1.75/liter

Other oil companies are expected to follow suit although most oil companies implement price adjustments every Tuesday.

World oil prices declined after reports of higher US inventory from Energy Information Administration and the continuing trade tensions affecting US and China which could dampen demand.

The US-EIA data previously revealed that gasoline inventories climbed by 2.2 million barrels two weeks ago.

Last week, the oil companies also cut pump prices by P1.70 to P1.75 per liter for gasoline, P1.05 per liter for diesel and P1 per liter for kerosene.

Prior to the latest rollback, year-to-date adjustments stand at a net increase of P5.50 per liter for gasoline, P4.70 per liter for diesel and P3 per liter for kerosene.

Meanwhile, consumer group Laban Konsyumer Inc. welcomed the issuance of the Department of Energy of the circular on the unbundling of prices of petroleum products,

“It is a good start and good news for all consumers.   We earnestly await the implementation of the circular which will allow consumers to understand why oil prices adjustments weekly are the same amount for gas, diesel, and kerosene for all oil companies whether pure importers or those with refineries,” LKI president Vic Dimagiba said.

“Notwithstanding the confidentiality provisions, we believe the DOE or any oil company should inform consumers the details on the unbundled price adjustment,” he said. 

Energy Secretary Alfonso Cusi has signed the department circular providing for the unbundling of petroleum product prices to improve price transparency among oil industry players.

“Consistent with the mandate of the Department of Energy on effective data-driven policymaking, as well as ensuring greater market transparency, we have amended our guidelines for the reporting of price adjustments by oil companies in the downstream oil industry in the Philippines,” Cusi said.

Cusi signed DC 2019-05-008, titled Revised Guidelines for the Monitoring of Prices in the Sale of Petroleum Products by the Downstream Oil Industry last May 28.

“In accordance with existing guidelines, oil companies will continue to report to the DOE any adjustments in the retail prices of gasoline, automotive and industrial diesel, kerosene, jet fuel, and aviation gas, and household and automotive liquefied petroleum gas,” Cusi said.

The energy chief said that under the new guidelines, oil companies will also be required to report their “unbundled price adjustments” to include import costs, tax burdens, biofuel costs and other essential cost components that contribute to the changes in retail prices.

“These enhancements will provide the DOE and other relevant government agencies with the necessary data to formulate proactive and appropriate policy initiatives for the benefit of consumers and the downstream oil industry,” Cusi said.

“Furthermore, the data provided will support the Department of Energy-Department of Justice (DOE-DOJ) Task Force investigations on reported incidents of anti-competitive behavior,” he said.

Cusi said the utilization of the data collected would be subjected to the strict confidentiality requirements under the Downstream Oil Industry Deregulation Act, the Freedom of Information Act, and the Philippine Competition Commission laws.

READ: Phoenix leads oil price rollback: P0.35/liter

Topics: Phoenix Petroleum Philippines , oil price rollback , Energy Information Administration ,
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