MANILA, Philippines — The country saw this week the biggest slash in pump prices in over a decade when the oil companies announced reductions of up to P4.25 per liter for both diesel and gasoline.
In Metro Manila, the price of diesel now ranges from P31.05 to P40.92 per liter, according to the Department of Energy. For gasoline, it’s between P38.97 and P54.58 per liter.
Pilipinas Shell, Total Philippines, PTT Philippines and Chevron (formerly Caltex) said they implemented the price cuts on Tuesday morning. Seaoil Philippines was the first to implement the price rollback on Sunday.
Petron and Flying V reduced retail prices of diesel and gasoline by P4 per liter. Petron, the country’s biggest crude oil refiner, said its decision reflected international prices.
Over the past eight weeks since the effects of the new coronavirus started to impact on the oil market, pump prices of diesel in the Philippines have gone down seven times, for a total of P9.50 per liter, while those of gasoline have been cut six times for a cumulative reduction of P8.40 per liter.
The prices fell amid expectations of a contraction in global demand as economies worldwide suffer from the effects of the coronavirus pandemic.
Major economies are now hurtling toward recession as both demand and supply have been severely curtailed.
The situation has been exacerbated by a price war between oil producers Russia and Saudi Arabia, which are both ramping up output and slashing prices.
Worldwide oil demand is expected to contract this year for the first time since the 2009 global financial crisis, according to the International Energy Agency.
As of press time, the international benchmark Brent crude was fetching $33.20 per barrel at the futures. This was lower than the $34.36 that was recorded on March 9 when crude oil plunged 32 percent in the wake of the Moscow-Riyadh row.
Dubai crude was trading at $30.91 per barrel, down from the previous trading day’s $33.30 per barrel.
Pilipinas Shell said the huge rollback in pump prices in the country this week had not been seen “in at least the past 10 years.”