Domestic pump prices will likely remain steady even as the Organization of Petroleum Exporting Countries decided to cut back production starting January, an oil official said.
“I’m hoping a stable pricing with minimal increase or decrease of prices. No sharp movement on either direction with a more balance supply and demand situation after the announced cut of 1.5 million barrels daily,” Eastern Petroleum president Fernando Martinez said.
Eastern Petroleum and Chevron Philippines also announced a price rollback of P0.30 per liter for diesel and P0.15 per liter for gasoline effective 6 am Tuesday.
PetroGazz said it will also implement a similar price cut on Tuesday while others are expected to follow suit.
Phoenix Petroleum Philippines and Seaoil Philippines were the first to announced oil price rollback of as much as P0.30 per liter effective last Saturday to reflect the movement of world oil prices in the domestic market.
Last Dec. 11, the oil companies implemented a P0.40 per liter increase for gasoline but rolled back the price of diesel and kerosene by P0.10 per liter and P0.45 per liter, respectively.
Total year-to-date adjustments for gasoline is seen at a net decrease of P0.20 per liter.
Net increase for diesel is expected to be lowered to P1.20 per liter while kerosene’s net increase will now be at P0.78 per liter.
World oil prices declined last week due to concerns of oversupply despite moves to cut production.
OPEC and its allies, including Russia, have agreed to cut production starting January by 1.2 million barrels per day.
Energy Secretary Alfonso Cusi expects world oil prices to maintain at its current range of $50 to $60 per barrel by next year although he said any volatilities in the world market will have impact on prices.
