Fuel prices slashed as oil demand weakens

AP File photo

True to the market buzz toward the weekend, local oil firms implemented fuel price cuts at 12:01 a.m. Sunday.

Petron and Shell, the country’s two major oil firms, announced separately that they would roll back the prices of gasoline by P2.50 per liter, diesel by P2.25 and kerosene by P2.25.

Minor oil firms Seaoil and PTT Philippines said they would implement similar price cuts at the same time. PTT Philippines, however, does not sell kerosene.

The price cuts reflect movements in the international oil market, where demand has been weakening since the oil boom in the United States earlier this year.

Crude oil prices have weakened from over $100 per barrel earlier this year to just under $70 as exporting countries failed to agree to cut output during a recent meeting.

Industry observers in the Philippines, meanwhile, said the timing was right for consumers wanting to fill up in anticipation of higher demand after Typhoon “Ruby” hits the country and possibly disrupts retail services in flood-prone areas. Ruby is forecast to bring strong winds and heavy rains from Saturday to Tuesday.

The oil firms have assured retailers they are ready to restore fuel supplies in areas to be affected by Ruby.