MANILA, Philippines?(UPDATE 2) In compliance with President Gloria Macapagal-Arroyo's Executive Order 839, Petron Corp., Pilipinas Shell, and Phoenix Petroleum cut back oil prices effective Tuesday.

Effective 12:01 a.m. Tuesday, Pilipinas Shell slashed the prices of diesel by P2 per liter, unleaded premium gasoline by P1.25 per liter, regular gasoline by P0.85 per liter, and kerosene by P1.50 per liter, said vice president for communications Roberto Kanapi.

The same price cuts were implemented by Petron at 6 a.m., said spokesperson Virginia Ruivivar.

She said the price adjustment would take effect only in storm-ravaged Luzon island.

Independent oil firm Phoenix Petroleum also cut the prices of diesel and gasoline by P2 per liter and P1.25 per liter, respectively, effective 12 noon.

?Without prejudice to seeking legal remedies, Pilipinas Shell will comply with the directive of Executive Order 839 for oil industry players to maintain prices of petroleum products prevailing on 15th October,? Kanapi said.

He added that the oil firm will seek clarification from the Department of Energy on some ?unclear? points of the EO, such as the products affected, the period of effectivity, the definition of pricing levels including suggested retail price (SRP) versus actual retail price (ARP), and the geographical coverage of the Executive Order.?

?While the intent of the Executive Order is to prevent unreasonable increase in prices of petroleum products during a state of calamity, the consequences of the Executive Order would be supply disruptions and negative impact on the investment climate in our country,? ,? Kanapi said.

?We will continue to discuss these issues with the DoE-DoJ (Department of Energy-Department of Justice) Task Force and other relevant government agencies,? he said.