Local oil players implemented a rollback in their prices for the fourth consecutive week after global prices dropped anew due to fears the spread of coronavirus will reduce demand for oil globally.
According to the Department of Energy (DOE), the latest average Manila price per liter of gasoline (RON95) is at P52.92, diesel at P42.73 and kerosene at P46.82.
Shell and Seaoil adjusted the prices of gasoline by P1.60 per liter, diesel by P2 per liter and kerosene by P2.45 per liter.
Phoenix cut the price of gasoline by P1.60 per liter and diesel by P2 per liter.
Some retailers implemented the rollback over the weekend but most are making the rollback effective today.
The DOE said as of January 28, year-to-date adjustments stood at a net decreases of P1.25 per liter for gasoline, P1.90 per liter for diesel and P1.99 per liter for kerosene.
Reuters reported that as of Friday last week, Brent crude fell 13 cents to settle at $58.16 a barrel while US West Texas Intermediate decreased by 58 cents to end the session at $51.56 a barrel.
The report said disruptions in supply chains and travel bans prompted economists to temper growth expectations for China, the world’s second-largest economy. Goldman Sachs said the outbreak was likely to lower China’s economic growth this year by 0.4 percentage point and can possibly drag the US economy as well.
Experts said the outbreak could cut China’s oil demand by more than 250,000 barrels per day in the first quarter.
Russian energy minister Alexander Novak said Russia is ready to lead a meeting with the Organization of the Petroleum Exporting Countries to address a possible hit to global oil demand from the virus but would need several more days to assess the impact and decide on the date of the meeting.
