DOE: 'Big 3' oil firms to cut fuel prices this week

(Updated 5:18 p.m.) As oil prices in the world market continue to drop, the Big 3 oil firms are expected to slash the prices of their petroleum products this week, the Energy Department said this weekend. Apart from oil giants Pilipinas Shell Petroleum Corp., Chevron Philippines Inc. (formerly Caltex) and Petron Corp., independent oil player Flying V Philippines will also cut the prices of its fuel products, according to Energy Undersecretary Jay Layug. Starting on Monday at 6 a.m., Petron Corp. will reduce the prices of its gasoline products by P0.75 a liter and diesel and kerosene products by P0.25 per liter, Layug said. Shell told the Energy Department last Friday that it will reduce the prices of its petroleum products this week as oil prices in the international market "are going down," according to Layug. Chevron is possibly "giving a P1-per-liter discount" on all its fuel products within the week, he also said. Layug said Flying V initially announced that it will slash the prices of its gasoline and diesel products by P0.80 per liter and P0.20 per liter, respectively. Since January, domestic oil firms have raised pump prices by P1.75 per liter for gasoline and P2.25 per liter for diesel. Layug explained that the drop of oil prices in the international market was due to speculation that China — world's largest energy consumer — will take more steps to cool its economy and slow fuel demand. He added that Saudi Arabia's announcement to increase oil production has prodded the decline of oil prices. — JE/OMG, GMANews.TV