Oil Companies Implement Second Round of Price Reductions for Petroleum Products

Strategic Insights -

Oil companies in the Philippines led by Chevron Philippines (formerly Caltex) and Seaoil Philippines initiated another round of price reductions for gasoline, diesel, and kerosene, effective at 12.01 a.m. on Thursday. This move comes in response to the continued softening of crude oil prices on the world market, particularly the improved peso-dollar exchange rate and the easing of concern over Organization of the Petroleum Exporting Countries (OPEC) output cutting. Other oil firms such as Petron, Shell, Eastern Petroleum, and Unioil Philippines followed suit at 6 a.m., while Total cut prices at 12 noon.

Key Takeaways:

  • Chevron Philippines and Seaoil Philippines led the price reductions by P0.50 per litre for gasoline, diesel, and kerosene.
  • Other oil firms including Petron, Shell, Eastern Petroleum, and Unioil Philippines implemented price reductions at 6 a.m., while Total cut prices at 12 noon.
  • The price reductions are the second instance of oil firms implementing price rollbacks this month.
  • The New York crude future price hit a low of US$57.48 a barrel, the lowest price this year, due to easing OPEC output cutting concerns.
  • Brent North Sea crude for November delivery dropped 69 cents to settle at US$58.65 a barrel.
  • Oil prices have fallen sharply in recent weeks from a record high of US$78.40 per barrel on the New York Mercantile Exchange in mid-July.

Statistics:

  • Prices of gasoline, diesel, and kerosene were reduced by P0.50 per litre.
  • The New York crude future price fell to US$57.59 a barrel, a decrease of 93 cents.
  • Brent North Sea crude for November delivery settled at US$58.65 a barrel, following a 69-cent drop.
  • Oil prices dropped to US$58.65 a barrel, the lowest price this year.
  • The peso-dollar exchange rate improved, contributing to the price reductions.
  • Oil prices fell sharply from a record high of US$78.40 per barrel on the New York Mercantile Exchange in mid-July.

Sources:

  • "Asia Pulse"
  • "Manila Bulletin"
  • "PNA"