Oil Products–Is the Big-time Rollback Enough?

October 31st, 2008 by Sexy Mom · Viewed 1387 times · 6 Comments

While Saying Good-Bye to October…

In the newspapers this morning, a big-time rollback–by as much as P6 in the price of oil products has been announced. Gasoline and diesel prices have gone down by a total of P15.50 and P16.50 per liter, respectively, since August.

On television this evening, it has been announced that the price of LPG will be lowered by as much as P2+/kg from midnight, and that the price of oil products will now be reviewed every week. It used to be reviewed monthly in the past.

These are welcome news to the consumers who have been wary of the skyrocketing prices in basic commodities and utilities the past few months.

The authorized fares for public transport (bus, jeepney, taxi and tricycle fares) have not been lowered, though, despite the decrease in the price of oil products (I remember diesel to have gone to a high of P58 several weeks ago–it’s now down to about P41/liter).

Now tell me, is the rollback good enough?

Should the authorized fares for public transport be adjusted appropriately?

From The Philippine Star

Oil companies slashed pump prices yesterday by as much as P6 per liter, the biggest one-time rollback since the implementation of the oil deregulation law 10 years ago.

Unioil Petroleum Corp. implemented the biggest cut, at P6 per liter for diesel and P2.50 for gasoline and kerosene.

Petron Corp., Pilipinas Shell Petroleum Corp., Chevron Philippines, Total Philippines Corp., PTT Philippines and Eastern Petroleum Corp. rolled back their prices by P5 per liter for diesel and P2 for gasoline and kerosene.

Seaoil cut its diesel prices by P4 per liter. Flying V cut its diesel price by P4 and its gasoline by P2 per liter. Flying V chairman Ramon Villavicencio said another cut of P3 to P4 is expected for diesel products in December.

Local petroleum firms implemented sharper price cuts in the light of falling global crude prices as well as pressure from consumer and militant groups.

Dubai crude, the pricing benchmark of oil refiners, went down to an average of $68 per barrel as of Oct. 29, from $95.90 per barrel in September.

Gasoline in Mean of Platts Singapore (MOPS), the pricing gauge used by oil importers, went down to $81 per barrel as of Oct. 29, from $107.10 per barrel average last month.

LPG contract prices also dropped to $90 per metric ton in October from $121.04 in September.

Yesterday’s rollback was the fourth for October. Gasoline and diesel prices have gone down by a total of P15.50 and P16.50 per liter, respectively, since August.

Eastern Petroleum chairman Fernando Martinez said the rollback was the 15th since July 31.

With the latest rollback, Eastern Petroleum’s diesel product now costs P39.50 per liter from P44.50 for PUJs and P40.50 for the regular diesel lane.

Its gasoline is now priced at P45.50 per liter from P47.50.

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6 responses so far ↓

Sexy Mom // Nov 1, 2008 at 6:49 am

LATEST from today’s issue of The Phil Star: Fare cut in effect next week

The LFTRB is set to implement next week a P1 fare cut for buses and 50 centavos for jeepneys pending deliberations on the petition for fare cuts filed by the (National Council for Commuters Protection (NCCP).

LFTRB Chairman T Lantion said jeepneys and bus operators agreed Thursday night on the provisional fare cut as an offshoot of the series of rollbacks in diesel and gasoline prices in the local market.
jho // Nov 1, 2008 at 9:11 am

sana pati mga FX operators ganun din ang gawin. kasi sobra sila maningil sa mga pasahero. Dapat ata pati sila may matrix para fixed din ang singil sa pasahe ng mga ito.
myepinoy // Nov 1, 2008 at 4:18 pm

On Monday 27/10/2008, Deutsche Bank lowered its 2009 oil price forecast by $25 a barrel, to $60, saying the price could bottom out at $50.

Brent oil (BRT-) closed Friday at $60.39 same level as 03/26/2007, 02/13/2006,11/07/2005 and 8/8/2005.

To approximate how much the pump prices now, just check the prices on the above dates. One factor to consider is that the exchange rate at those dates were higher as compared today.

Also, I bet that these oil companies made money on Options contract (PUT) as their analysts probably predicted that oil prices in the market is on the way down.

The questions: how long will these phil oil companies stay greedy and how much (abusive) profits they want to amass?

Given their “super ganid” attitude of jacking up the prices immediately when world oil prices go up (parang bumibili lang sa supermarket)and giving us crumbs when oil prices go down, your guess of how much money they made is as good as mine.

other info: 3Q profits of Exxon Mobil Corp (XOM) and Chevron Corp (CHV) and Shell Oil soar.
myepinoy // Nov 1, 2008 at 4:58 pm

According to IBON Foundation, On March 2007, the average pump price of diesel was P31.90 and of regular gasoline P33.64.

One wonders why the govt of gloria is not pushing hard to get these oil companies roll down their prices; the main reason is “money” from the “killer-nobody-escape” tax called e-vat (12% or php0.12/php1.00)which will substantially goes down as well.
Belle // Nov 2, 2008 at 8:03 am

Dine, our price of gasoline/gallon has dropped by a dollar & a quarter already. The cheapest price I saw was $2.53 a gallon. A gallon is about 3.8 liters multiplied by 45.50 = php172.90….big improvement but still high. So they need to lower their prices more.
Coping with the difficult times–a family affair : The D Spot // Nov 21, 2008 at 9:51 am

[...] the price of gas against the price of oil in the world market, rejoice when there is a significant rollback in the price of gas. They have helped decrease the electric bill from P15th/month down to P8th/month, the water bill [...]

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