Filipino motorists will gain massive financial relief this week as the price of gasoline will be on a hefty rollback of P2.40 per liter, while socially sensitive diesel products will be down by P2.65 per liter.

With airline travels getting restricted again in many parts of the world because of the Omicron variant of COVID, the price of kerosene, which is a base for aviation fuel, will also be reduced by P2.70 per liter,

As of this writing, the oil companies that already sent notices on their price cuts had been Pilipinas Shell Petroleum Corporation, Cleanfuel, Seaoil, Chevron, PetroGazz, and PTT Philippines effective Tuesday (December 7); while their competitor-firms are anticipated to follow.

According to the Department of Energy (DOE), the price reduction for gasoline products had been leaner-than-expected because some oil companies, including Pilipinas Shell, are still recovering premium costs.

The department said it is requiring the oil companies to provide more comprehensive explanation and justification for that component of their cost recoveries at the pumps.

Atty. Rino Abad, director of the DOE-Oil Industry Management Bureau (DOE-OIMB), explained that the downtrend in domestic pump prices had been due to weaker oil demand globally because of rising Covid infections triggered by the Omicron variant.

In addition, he noted that there are plans on the part of the United States, United Kingdom, China, India, Japan and South Korea for “coordinated release of additional supply” from their respective strategic reserves.

The Organization of the Petroleum Exporting Countries (OPEC) and its ally-producers (OPEC+) also made earlier pronouncements that they will shore up by additional 400,000 barrels per day the scale of crude supply that will be injected into market starting January next year.

It was similarly pointed out by the DOE that since the start of demand build-up from August this year, OPEC+ had already pumped in roughly 2.4 million per day as additional supply in the market.

The lower pump prices will be highly beneficial to Filipino consumers who are now on their Christmas rush to prepare for the country’s longest holiday of the year.

Source: Manila Bulletin (