Unioil

Petron Corp., Pilipinas Shell Petroleum Corp., Chevron Philippines, Inc., Seaoil Philippines, Inc. and Unioil Petroleum Philippines, Inc. cut diesel prices by P1.75 per liter, kerosene by P2/liter, unleaded gasoline by P0.50/liter and regular gasoline by P1.25/liter.

The adjustments were implemented at 12:01 a.m., except for Petron which lowered prices at 6 a.m.

Lower prices were "due to [Osama] bin Laden’s death and projections that the United States economy is faltering again, this is likely to result in lower demand for oil," Energy Undersecretary Jose M. Layug, Jr. said in an interview. Bin Laden was killed last week during a raid by US commandos in Pakistan.

International oil prices dropped by almost $10 per barrel last week.

The Energy department was, however, noncommittal on further price cuts this week.

"[Further downward price adjustments will] depend on the market. I need to wait for the formula calculation to see how much is the appropriate reduction," aid Mr. Layug.

He then noted the erratic movements of oil prices since the beginning of the year.

"Oil prices in 2011 have been very volatile that they react to all kinds of events," Mr. Layug added.

Dubai crude, the benchmark of domestic prices, currently sells for $105.47 per barrel from last week’s $115 per barrel.

Mr. Layug said monitoring from the Department of Energy last week showed that diesel prices ranged from P46.75/liter to P48.75/liter with a common price of P48.20/liter.

Gasoline prices range from P55.35/liter to P61.62/liter with a common price of P58.35/liter.

Yesterday’s price cut was only the fifth price reduction since the start of the year compared with 14 upward movements.

Gasoline prices have risen by a total of P9.75/liter given the recent price reduction. Diesel prices have increased by P7.45/liter.

Meanwhile, the United Drivers and Operators Center (Undoc) will spearhead a two-day transport strike in Bacolod City on May 16-17 to urge the government to address the disparity in fuel prices.

The Bacolod Filipino-Chinese Chamber of Commerce and Industry and the Metro Bacolod Chamber of Commerce and Industry have pledged their support.

"If there will be a total standstill, we are willing to close our establishments and not buy gasoline during the two-day transport strike next week," said Ben Ortega of the Filipino-Chinese chamber. He added that they will meet with other business groups in preparation for the protest.

Other groups that have pledged support were Pinagkaisang Samahan ng mga Tsuper at Operator Nationwide (Piston), Federation of Bacolod Tricycle Operators and Drivers Association, Bagong Alyansang Makabayan and Bayan Muna, and the Social Action Center of the Bacolod Diocese.

Undoc Secretary-General Jessie Ortega said lawmakers in Negros Occidental will be asked to support the resolution of Bayan Muna that called for the reduction of prices of petroleum products and scrapping of the Oil Deregulation Law.

Mr. Ortega said they will also ask the support of taxi groups and some members of the Federation of Bacolod Drivers Association to join the strike.

Bacolod officials have been complaining about the disparity in fuel prices since 2009. A study conducted by the city government showed that prices of fuel in Bacolod were higher by almost P5 per liter than those in Manila and other areas of the country.

The Bacolod city council has passed a resolution requesting Mayor Evelio R. Leonardia to file, through the city legal officer, appropriate legal action against all oil firms operating in Bacolod City for the overpricing and possible violation of Republic Act 8497, or the Downstream Oil Industry Deregulation Act of 1998. -- Emilia Narni J. David and Chrysee G. Samillano, Business World