Oil firms cut prices of gasoline and diesel over the weekend to reflect the softening of oil prices in the world market.
Pilipinas Shell Petroleum Corp., Chevron Philippines and Seaoil Philippines cut prices by P1.75 per liter for diesel, P2 per liter for kerosene and P0.75 for unleaded and regular gasoline effective 12:01 am yesterday.
Petron Corp., Total Philippines, Phoenix Petroleum and Eastern Petroleum implemented the price rollback at 6 a.m. yesterday.
The last price increase of 25 centavos per liter of diesel and kerosene was on June 21. No adjustment was made for gasoline.
The Department of Energy's price monitoring showed that diesel prices had a net increase of P7.95 per liter year-to-date, while gasoline remained at P6.47/liter.
DOE said in its June 21 monitoring that international analysts believed that the US dollar was the seemingly strongest factor that further pushed crude oil prices down. It also said that other considerations might push oil prices up, including the expected rise in demand, mainly in non Organization for Economic Co-operation and Development countries, and the concerns over the crude oil supply.
The International Energy Agency chief economist, Fatih Birol, underscored China, India and the Middle East as the Asian giants who were driving the global energy demand - "They are responsible for more than 90 percent of the growth in global energy demand".
The IEA is looking at 1.3 percent annual demand growth for the next five years, with 41 percent of that demand coming from China alone. Thus, the Organization of Petroleum Exporting Countries wanted to produce more oil in order to meet demand for this year. DOE said oil prices were also pressured by the unsettled Greece bailout, and fears of contagion through the Eurozone.
The Greek debt drama continued to hang over the financial markets after Eurozone Financial Ministers, over the weekend, gave Greece an ultimatum that the government had two weeks to adopt drastic new austerity measures, or face the prospect of no emergency funds to avert default.*PNA