Oil firms slash pump prices anew

Oil firms slash pump prices anew
The price reduction – the second in March, so far – is due to rising US stock piles amid oversupply and a weaker US dollar

MANILA, Philippines – For the second time this month, oil companies slashed pump prices  by as much as P1.10 ($0.025) per liter effective Tuesday, March 24.

Pilipinas Shell and Seaoil announced they are reducing prices of gasoline by P1.10 ($0.025) per liter, diesel by P0.95 ($0.021), and kerosene by P0.90 per liter ($0.020).

Other oil firms are expected to follow suit.

On March 17, oil prices went down by P0.50 ($0.011) per liter for gasoline, P1.10 ($0.025) per liter for kerosene, and P0.85 ($0.019) per liter for diesel.

The latest price rollback reflects the movements in the international petroleum market.

Crude oil prices decreased by about $3 to $4 a barrel from March 9 to 13, reportedly due to the rising US stockpiles amid a global supply glut and a weaker dollar, based on the latest monitoring by the Department of Energy (DOE).

US crude inventories had climbed to a fresh record high of 448.9 million barrels in the week ending March 6, while stockpiles also increased, the US Department of Energy disclosed. 

The US dollar had eased from 12-year highs, making dollar-priced crude cheaper for buyers using stronger currencies, which tends to support demand and, in turn, prices.   

A weak US retail sales report for February also impacted the oil market.

Overall, Dubai crude price decreased week-on-week by almost $3 ($0.067) per barrel (bbl).

Mean of Platts Singapore gasoline and diesel also decreased by $2.30 ($0.051)/bbl and $3.20 ($0.072)/bbl, respectively. – Rappler.com

US$1 = P44.72

Gas station attendant at work image via Shutterstock

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