Oversupply brought fuel pump prices down — DOE

The Department of Energy (DOE) said on Tuesday the price rollback made by oil companies on petroleum product was a result of oversupply in the market.

Gasoline prices were rolled back by P0.75 per liter, diesel by P0.90, and kerosene by P0.90 per liter.

Petron, Seaoil, Eastern Petroleum, Flying V, and Chevron rolled back pump prices at 12:01 a.m. while Shell, Unioil, PTT, CityOil, and Jetti adjusted prices 6:00 a.m. Tuesday, according to DOE data.

"Ang oil price rollback ay dahil sa sobrang supply ng ating mga produkto," DOE spokesperson Felix Fuentebella told reporters in a press briefing.

Oversupply and weak demand for oil in the US and China caused the prices to go down in the global market, he said.

"Strong dollar, which makes oil expensive, and results in less demand from holders of other currencies is also a factor," he added.

The DOE official also took note of the problem in transporting oil products.

"Meron ding problems sa transportation ng oil from East to West, so companies are saying that it is not viable. Because of that we have abundant supply that brought oil prices down," Fuentebella said. — VDS, GMA News