MANILA – After two consecutive weeks of big-time price hikes, oil companies will reduce petroleum prices on Tuesday.

In separate advisories, Cleanfuel, Petro Gazz, Seaoil, and Shell said they will slash gasoline prices by PHP0.35 per liter and cut diesel prices by PHP1.10 per liter.

Seaoil and Shell will also slash kerosene prices by PHP0.45 per liter.

Other oil firms are expected to follow suit.

Following the announcement of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) that they will decrease oil output by two million barrels per day, the biggest cut since the onset of the coronavirus disease 2019 pandemic, local oil prices have increased by PHP2 per liter for gasoline, PHP9.55 per liter for diesel, and PHP6.40 per liter for kerosene.

According to industry experts, OPEC+ is expected to implement its output cut next month to raise global oil prices to USD100 level.

It reached USD125 per barrel in June this year.

Despite the planned output cut, West Texas Intermediate price fell by 0.24 percent to USD84.85 per barrel and Brent crude decreased by 0.28 percent to USD93.22 a barrel as of writing.

While the fear of a possible recession remains, China’s pronouncement of maintaining its zero-Covid policy will continue to affect growth in oil demand.