Oil firms reverse gears, cut prices by P0.80

Consumers may expect a reduction in the price of gasoline this week, a reprieve from weeks of oil price increases, a distributor said Sunday.

READ: New big-time oil price hike today

“Expect fuel prices to have mix movement next week (July 7 to 13).

Diesel should have no price movement, but gasoline should go down by P0.70 to P0.80 per liter,” Unioil Philippines said in its weekly price forecast.

World oil prices declined last week amid rising COVID-19 infections in the  United States, which traders fear could affect oil demand.

According to the Energy department’s latest monitoring report, the total year-to-date adjustments in pump prices now stand at a net decrease of P4.97 per liter of gasoline, P8.84 per liter of diesel and P12.99 per liter of kerosene.

On June 30, the oil distributors raised the price of gasoline by P0.70 per liter, diesel by P0.30 and kerosene by P0.40 to reflect the movement of oil prices in the world market.

READ: Unioil sets price hike: P0.80

The oil companies have also started charging the additional 10-percent tax on crude and petroleum products as provided in Executive Order 113.

Malacañang issued the EO on May 2 imposing an additional 10-percent import tax on petroleum products. That was to boost government resources to finance programs and measures to ease the effects of the pandemic and launch the country toward recovery and rehabilitation.

Energy Undersecretary Leonido Pulido III says the department is still waiting for an advisory from the Finance department on EO 113.