By Myrna Velasco
Maverick industry player Phoenix Petroleum Philippines Inc. has kick-started a new round of rollbacks in petroleum products at P2.60 per liter for its gasoline brand, and P2.70 per liter for its diesel products.
The oil firm, which is headed by businessman Dennis Uy, will be implementing the adjustment on Saturday, June 8, at 6 p.m., which will be way ahead of its industry rivals anew.
The price cuts had been due to the significant downswing in prices in the world market in the past trading week, according to the industry players.
The rest of the oil companies are expected to implement price reductions over the weekend or on Tuesday, which is the usual day when routine pump cost movements are made.
The only other company that had enforced price cuts as of Friday, June 7, is independent player PetroGazz – but at a more moderate scale of P2.00 per liter for both diesel and gasoline products.
Price swings in the oil sector had fluttered in both directions in the first six months of the year – with some weeks having massive scale price upticks, while the other weeks oscillated on hefty rollbacks.
The plummeting prices in the world market were heavily anchored on anticipated slowdown of global economic growths – which for the most part was being attributed to the ‘trade conflict” instigated by the United States, chiefly with China, which is the second biggest economy and also the second largest oil consumer in the world.
The downswing in prices had been occurring despite the geopolitical factors that were generally perceived affecting supply-demand dynamics, including protracted tension in the Middle East and the enforcement of sanctions against Iran and Venezuela.
For the Asian market, it was indicated that supply has been teeming, hence, the resulting decline in prices in recent trading weeks.
In the Philippines, the other component in oil pricing carefully being tracked is the fluctuations of the Philippine peso versus the US dollar as the country is heavily import-dependent on its petroleum needs.
Just recently, the Department of Energy (DOE) also issued a Circular requiring the oil companies to unbundle their product cost components on report-submissions that they will need to comply with.
Consumer advocacy group like the Laban Konsyumer Inc. (LKI) is prodding the department that despite the confidentiality of the document-reports, the government must find a way to “inform the consumers as to the details of the unbundled price adjustments.”