Oil Firms Cut Prices in Response to European Financial Crisis

Strategic Insights -

Oil firms in the Philippines have rolled back their prices following the decline in world oil prices due to the European financial crisis. The price cuts range from P1.20 per liter for gasoline to P0.80 per liter for kerosene, effective Monday. This move is attributed to the lower weekly average of international prices compared to the previous week, despite the weakening of the peso.

Key Takeaways:

  • The price cut for gasoline is P1.20 per liter, making it the most significant reduction among the three fuel types.
  • Diesel prices have decreased from P43.90 to P43 per liter, while kerosene prices have gone down from P54.90 to P53.90 per liter.
  • Petron and Unioil started cutting prices at 6:00 am Monday, while Shell, Seaoil, and Eastern Petroleum implemented the price cut at 12:01 am local time on October 3, 2011.
  • The price rollbacks are a direct result of the decline in world oil prices, with Shell citing a US$51 decline in the contract price of LPG.
  • Prices vary depending on location, brand, and market forces, with LPG currently selling at between P670 and P743 per 11-kg tank.

Statistics:

  • Price cut for gasoline: P1.20 per liter
  • Price cut for diesel: P1 per liter (from P43.90 to P43 per liter)
  • Price cut for kerosene: P0.80 per liter (from P54.90 to P53.90 per liter)
  • Weekly decline in LPG contract price: US$51
  • LPG price range: P670 to P743 per 11-kg tank
  • Rollback announcement timing: Monday (Petron and Unioil), October 3, 2011 (Shell, Seaoil, and Eastern Petroleum)

Sources:

  • Asia Pulse, "Oil firms cut prices by P1.20 per liter for gasoline, P1 per liter for diesel, P0.80 per liter for kerosene," October 4, 2011
  • "Petron, Unioil start P1.20 price rollback on Monday," Philippine Star, October 3, 2011
  • "Eastern Petroleum cuts fuel prices," Manila Standard Today, October 3, 2011