MikeLigalig.com

Consumers can expect more price reductions in November by as much as P3 to P5 per liter as prices of crude in the world market continue to drop.

Ramon Villavicencio, chairman of independent oil player Flying V said they are projecting that prices of fuel in the international market will even go down to US $ 50 per barrel to even as low as US $ 40 per barrel.

"There is a possibility that Dubai crude may even go down to $ 40 to $ 50 per barrel," Villavicencio said.

In the meeting called by the Department of Energy (DOE) last week, Villavicencio said they have no more under-recovery since they were able to recover it when prices went down during the months of July to September.

Citing the Mean of Platts Singapore (MOPS), Villavicencio said that in June their under-recovery reached to P9 per liter but from June to September, the MOPS decreased by P11.80 per liter, however, the foreign exchange went up by P2.40 per liter, Villavicencio said.

Asked if there will be another rollback this month, Villavicencio decline to give any assurance saying “it really depends on competition and market forces.”

However, he assured that the rollback is most definite in November.

Oil major players such as Pilipinas Shell, Petron Corporation, Chevron Philippines, Seaoil Philippines and Flying V are set to implement a P1 per liter rollback on the prices of diesel and kerosene midnight of Friday as a result of the softening of the prices in the world market.

However, Unioil Petroleum Philippines Inc. double the price of their reduction by implementing a P2 per liter rollback on their diesel and kerosene Friday midnight.

October price of imported diesel and gasoline now ranged at about US$ 104.4 and US$ 96.4 per barrel from US$ 121 and US$ 96 per barrel in September.

Dubai crude, on the other hand, has been averaging at US$ 83 per barrel from US$ 96 per barrel over the same period.

Since August, oil companies reduced their prices for the 11th time and total reductions already reached P9.50 per liter for diesel and P11.50 per liter for gasoline. - PNA

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