Oil companies cut pump prices

Yet another round of fuel price reductions sent pump rates below end-2019 levels, even with the increase in taxes, amid growing concern that the novel coronavirus from China could depress further what is already feared as weak demand.

Pilipinas Shell, Seaoil Philippines, PTT Philippines and Phoenix Petroleum cut pump prices of diesel for the third week in a row, this time by 40 centavos per liter effective 6 a.m. of Tuesday.

They also reduced prices of gasoline for the second week straight, this time by 30 centavos per liter. Also, Shell and Seaoil cut prices of kerosene by 35 centavos per liter.

This put pump prices lower than their end-2019 levels, even with the third tranche of tax hikes that took effect last Jan. 1 taken in to account. Starting Jan.1, taxes for diesel rose by P1.68 per liter, including P1.50 in excise and 18 centavos in value added tax (VAT).

This was P1.12 for gasoline, including P1 in excise and 12 centavos in VAT. So far this year, pump prices have gone down by a net of 22 centavos per liter for diesel, 13 centavos for gasoline and 88 centavos for kerosene.

Last week, global benchmark Brent crude oil dropped from $65.20 per barrel. —Ronnel W. Domingo