The country’s oil firms slashed the price of gasoline and kerosene by P0.25 per liter and diesel by P0.10 per liter effective 6 a.m. Tuesday to reflect the movement of prices in the world market.
“Petron will implement the following price rollbacks effective 6 a.m. Oct. 22: P0.25/liter for gasoline; P0.10/li for diesel; and P0.25/liter for kerosene. These reflect movements in the international oil market,” Petron Corp. said in an advisory.
Other oil companies such as PTT Philippines, Chevron Philippines, Seaoil Philippines, Phoenix Petroleum Philippines and Total Philippines also issued separate advisories of the price cut. Other players are expected to follow suit.
World prices declined amid continuing concerns of geopolitical risks that could impact on oil supply and demand.
Year-to-date adjustments stood at a net increase of P5.86 per liter for gasoline, P4.12 per liter for diesel and P1.21 per liter for kerosene prior to Tuesday’s price cuts.
Meanwhile, Energy Secretary Alfonso Cusi last week said he proposed to the Cabinet a review of the Oil Deregulation Law of 1998 to promote price transparency in oil prices.
“We discussed that in the Cabinet and proposed to review the Oil Deregulation Law because we need to have more transparency and really know how we price it,” Cusi said.
DOE issued Department Circular No. DC2019-005-0008 which requires oil companies 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, including industry take or profit.
The oil companies, however, filed for a temporary restraining order and injunction against the order.
“I believe that the Cabinet is with us because it is the interest of the people that is at stake,” Cusi said.
The Energy department has also issued show cause orders against 13 oil companies regarding their oil price computations.
“I also issued a show cause order over the difference of the oil prices between Baguio, for example, and Pangasinan or Manila. There is that price difference. I want that price difference to be unbundled. If I cannot unbundle the whole of the price, I want to unbundle the difference,” the Energy chief said.