Oil firms slash prices again

File photo

MANILA, Philippines — Local oil companies are reducing the prices of their products effective on Aug. 6 for the second straight week in a row due to declining demand in China and the expected supply boost in the global market.

In separate advisories on Monday, Shell Pilipinas, Jetti, Seaoil, Caltex, Petro Gazz and Cleanfuel said the prices per liter of diesel and kerosene would go down by 20 centavos and 45 centavos, respectively. This marked the fourth consecutive week of price rollbacks in both oil products.

Gasoline, on the other hand, will be cheaper by 10 centavos per liter. Two weeks ago, its price went up by the same amount.

READ: Oil firms hike prices anew

“The downward pressure is attributed to the weakening demand from China and the plans of Opec+ (Organization of the Petroleum Exporting Countries and allies led by Russia) to increase supplies in the world market,” said Rodela Romero, bureau director III of the Department of Energy-Oil Industry Management.

She also cited the extended gains in crude oil futures due to escalating geopolitical risk from renewed conflict in the Middle East and lower US crude inventories.

Romero reminded sellers that a 15-day price freeze on 11-kilogram and below liquefied petroleum gas and kerosene remains in effect after some provinces were placed under a state of calamity due to widespread flooding last month.