Fuel price reductions up this week - oil firm

MANILA, Philippines - A major oil company on Monday confirmed more fuel price cuts may be expected within the week due to the steep decline in world prices. In a chance interview on the sidelines of the "Toda Bigay" gathering of tricycle drivers in Pasay City, Pilipinas Shell Petroleum Corp. Country Chairman Edgar O. Chua said they may lower their pump prices by Thursday or Friday, but noted this will depend on world price movements. "Before her speech [in the Toda Bigay event], the President asked me if we can lower our prices. There should be further downward adjustments if oil prices in the world market continue to slide. I think we can look forward to something by Thursday or Friday," Mr. Chua said in Filipino. "We’ll see... we review prices weekly. If there’s a major change, then we will reflect it," he added. Mr. Chua declined to state the price reduction. During the "Toda Bigay" event, where Shell officials distributed discount cards to tricycle drivers, Mrs. Arroyo thanked the oil firm for its effort to make its products affordable to the masses. The President also thanked Shell for its succeeding price reductions. "Salamat sa mga susunod pang price rollback. (Thank you for the next price rollbacks)," she said. Mr. Chua, however, clarified, that they were not pressured by Mrs. Arroyo. "No [there was no pressure]. I was asked by the President if we can implement a rollback and I told her, the way things are going, I think there is a very high likelihood of further reduction," he said. Asked if more price cuts can be expected before All Saints’ Day, Mr. Chua said, "Malamang [most likely]." Other oil firms refused to comment. Eastern Petroleum Corp. Chairman Fernando L. Martinez said in a text message, "We still can’t say for now [if we will cut prices]." Small oil firms Flying V, Eastern Petroleum and Seaoil Philippines Inc. implemented bigger price cuts last week by as much as P3, while another small firm, Unioil Petroleum Philippines Inc., implemented a P2 cut for diesel and P1 for gasoline. Major players Petron Corp., Shell, Chevron Philippines, Inc. and Total Philippines, Inc. only implemented a P1 cut for all products. Dubai crude as of Monday already plunged to $74 per barrel from last month’s average of $95. Imported gasoline also declined from $107 to $89, while imported diesel is also far below last month’s average of $121 to post $94 as of Monday. Since August, oil firms, reduced prices by P12.50 for gasoline and P10.50 for diesel bringing pump prices to P46-P50 for gasoline and diesel at P44-P48. The price cut last week was the second this month. — Alexis Douglas B. Romero and Ava Kashina K. Austria, BusinessWorld