Over P2 rollback in pump prices set

MANILA, Philippines — Hefty fuel price cuts are expected next week after global crude prices slumped due to slower demand and supply build up.

Phoenix Petroleum Philippines Inc. led the price cut with a P2.60 per liter reduction on gasoline and P2.70 per liter on diesel starting at 6 p.m. yesterday.

Other oil companies implement their price reductions on Tuesday. 

Global oil prices slipped to their January lows due to surging supply in the market and fears about slowing demand.

Reuters reported Brent crude hovered at $60 per barrel level due to concerns over the US trade war with China that had worsened fears of a slowdown in the global economy.

The geopolitical risks affecting demand outlook are from the US trade wars with China and Mexico that had created trade tension.

Meanwhile, the American Petroleum Institute reported an increase in US crude inventories, which was more than expected.

This is the third successive week that oil companies will roll back fuel prices.

Last week, oil companies slashed gasoline prices by P1.70 per liter, diesel by P1.00 per liter and kerosene by P1.05 per liter. 

Prior this week’s price cuts, year-to-date adjustments stand at a net increase of P5.50 per liter for gasoline, P4.70 per liter for diesel and P3.00 per liter for kerosene, based on data from the Department of Energy (DOE).