MANILA -- The tide seems to have turned in favor of motorists as oil executives announce a modest rollback in pump prices scheduled to come into effect on Tuesday, but homeowners will be biting their lips as the price of cooking gas is headed in the opposite direction.
The country's two major oil companies have already made formal announcements Sunday afternoon about the impending price adjustments, while others are expected to issue similar statements soon.
Pilipinas Shell, beating the competition to the punch, said in a text message to journalists that it would be cutting prices of its diesel products by PHP0.30 per liter, its gasoline products by PHP0.10 per liter and kerosene by PHP0.20 per liter, effective 6 a.m. on April 2.
Meantime, Petron Corporation announced a PHP1.25 per kilogram increase in the prices of Liquefied Petroleum Gas (LPG) affective 12.01 a.m. on April 1. This translates to a PHP13.75 increase for every 11-kilo tank of cooking gas.
The price of Auto LPG, often used by local taxi cabs, will likewise go up by PHP0.70 per liter.
Industry sources said these adjustments reflect the current direction that the international oil market has taken in recent days which local oil firms are simply passing on to the Filipino consumer.
They explain that domestic prices of liquid fuels are dictated by the price of finished oil products in the world market while LPG prices are dictated by the international contract prices of LPG -- which are traded separately.
"There is nothing unusual that gasoline and diesel (prices) are moving down... while LPG prices are headed upward. They are traded as completely distinct commodities," the same sources explained. (PNA)