Shell, Petron implement rollback

MAJOR oil players will slash by P1 per liter the prices on their gasoline, higher than the 50 centavos per liter price reduction implemented by independent oil firms Monday.

Pilipinas Shell Petroleum Corp. and Petron Corp. said their price rollback will take effect early morning of Tuesday, February 2.

For updates from around the country, follow Sun.Star on Twitter

Chevron Philippines, on the other hand, said its price reduction started 6 p.m. Monday.

Aside from gasoline, Shell is also reducing its diesel and kerosene by 75 centavos per liter.

Phoenix Petroleum and Total Philippines also rolled back the prices of their diesel, kerosene and gasoline by the same amount.

Meanwhile, retailers of liquefied petroleum gas (LPG) will cut prices of cooking gas by 50 centavos per kg for an 11 kg cylinder tank.

Arnel Ty, president of LPG Marketers Association (LPGMA), said the price reduction will take effect Tuesday.

Energy Secretary Angelo Reyes, for his part, said the rollback implemented by oil firms only show that price movements are dictated by market forces and competition, which is a good business environment.

“We all want oil prices to be low, but the reality is we don’t have control over prices of oil. As it is a deregulated market, we cannot impose price control on petroleum products unlike on other products (sugar, rice, corn, cement and fertilizers). Now if we want to control prices, then it should be stated in the law,” Reyes told reporters.

Reyes also noted that the much higher price rollback implemented by other oil companies showed that there is no collusion among oil companies.

“We should be doubtful if they all have the same price levels and if price adjustments are all done at the same time and at the same levels. The nature of competition is that you compete on the basis of quality, pricing, and service a company extends to its clientele. And pricing is one form of competing with the others. Some may have lower prices, and if there are differences, and it is better to have price differences as it will also pressure companies to bring prices lower,” he added.

On the other hand, Reyes assured that the Energy department is strictly monitoring price movement in the country to protect the consumers.

“We know that 95 percent of our requirements for petroleum products are imported. So we are really almost dictated upon by international prices and the behavior of the peso against the dollar. It’s given that when we try to see to it that local prices reasonably reflects world oil prices. And we will not allow oil companies to abuse pricing,” he declared. (MSN/Sunnex)