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Oil firms cut pump prices anew

abs-cbnNEWS.com | 11/21/2008 8:37 PM

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For the second time this week, major oil players Pilipinas Shell and Petron Corp. have announced another P1.00 per liter rollback in diesel, gasoline and kerosene prices effective Saturday.

Both Petron and Shell announced they will reduce the prices of their gasoline, kerosene, and diesel products by P1.00 per liter effective 12:01 a.m. Saturday.

Petron said the rollback will be implemented to reflect international oil prices.

"This is the third price rollback in eight days, and since August gasoline and diesel prices have both been decreased by P19.50/lilter," Petron said.

Caltex and PTT immediately followed Shell's rollback advise.

This is already the fourth price cut for the month with a total rollback of P4.00 per liter for gasoline and P3.00 per liter for diesel.

Flying-V chairman Chito Villavicencio has estimated the price of diesel to settle at P30.00 or even less before the year ends. He noted that Dubai crude, which is the benchmark used by local retailers, has dropped to $45.00 per barrel last Thursday due to the global financial crunch.

“Let’s be patient. It's just a matter of time. It will settle at [P30.00] or even below by end December,” Villavicencio said.

Diesel currently retails at P37.00 per liter for public utility jeepneys.

'Lower diesel prices mean lower jeepney fares'

Transport group Pasang Masda has assured commuters the organization will file a petition to reduce the minimum fare once diesel prices go down to the P35.00/liter level. He said an an additional fare cut is expected if diesel prices reach P30.00 per liter.

The group is will lead a protest action against Shell, Petron and Caltex next week to pressure the Big 3 to implement a one-time hefty price cut.

The Land Transportation Franchising and Regulatory Board said a P1.00 cut in transport fares is still possible before Christmas if any of the jeepney groups file a petition before the third week of December.

Oil prices rose back above 50 dollars a barrel on Friday as dealers sought bargain crude after the commodity struck the lowest levels for almost four years below the key psychological mark.

Light sweet crude for delivery in January gained 59 cents to 50.01 dollars a barrel on the New York Mercantile Exchange (NYMEX).

Earlier Friday, New York crude fell to 48.25 dollars -- the lowest point since May 2005.

On London's InterContinental Exchange (ICE), Brent North Sea crude for delivery in January climbed 1.18 dollars to 49.26 dollars.

Earlier Friday, Brent dropped to 47.40 dollars a barrel -- the lowest level since February 2005. With a report from Agence France-Presse

as of 11/21/2008 8:37 PM