The price of gasoline products in the country had been reduced by P0.80 per liter, lower than what was anticipated at over P1.00 per liter because of the last batch of cost recovery on higher ethanol prices, according to the industry players.
The oil companies similarly trimmed the pump prices of diesel by P0.75 per liter; and there was a heftier price cut of P0.90 per liter for kerosene products.
As of this writing, the oil companies that already sent notices on their price rollback effective on Tuesday (August 24) had been Pilipinas Shell Petroleum Corporation, Seaoil, Cleanfuel, Chevron, PetroGazz, Total and PTT Philippines while their competitors are anticipated to follow.
In a related development, Pilipinas Shell apprised the public that it will be offering discounts to Covid-19 vaccinated customers – at a scale of P3.00 per liter off on their Shell V Power gasoline (racing) or Shell FuelSave gasoline purchases; P2.00 per liter off on Shell V-Power diesel or Shell FuelSave diesel; and there will also be 10-percent discount on Shell Select deli2go 12-ounce drinks, such as café Americano, café latte or hot chocolate.
The oil company added it will give out free one (1) liter of any Shell V-Power fuel with every purchase of 800ml or 1.0-liter Shell advance motorcycle oil; 4 liters or 6 liters of Shell Rimula diesel engine oil; or Shell Helix HX7oil change package or higher.
For August, there had already been three rounds of price rollbacks implemented; and just one price hike imposed in the first week; thus, for gasoline products, there was already a net reduction of P0.40 per liter for the period.
Further, diesel prices within the month likewise incurred net rollback of P0.95 per liter versus July prices; while kerosene had heftier aggregate reduction of P1.30 per liter.
Global oil prices had been on precipitous slide again last week, with widespread forecast of slowdown in economic recovery because of the devastating resurgence of Covid-19 infections in many parts of the world.
International benchmark Brent crude tumbled to the level of US$65 per barrel last week; although by Monday, it was able to slightly regain its strength at US$66 per barrel.
Experts noted that stricter travel and movement restrictions are being re-enforced in various parts of the world, as governments grapple with measures on how to stem the spread of Covid-19’s Delta variant, which is known to trigger faster rate of infections.
The Philippines also had its share of re-implementation of strict lockdowns because of the Delta variant and that caused new wave of oil demand softening in the domestic market.
The oil companies were already eyeing bullish demand recovery, but the sentiment shifted in recent weeks because of the sudden upturn of coronavirus infections again – which is not just impacting adversely on their sales but also on the overall economic outlook of the country.