RP oil consumption down by 10%

[altec]

from ABS-CBNNEWS

RP oil consumption shrinks by a tenth

Philippine oil consumption shrunk by nearly a tenth in the first semester, with signs of further decline in the colder months.

Energy Secretary Raphael P.M. Lotilla said the Philippine oil market contracted by about 8 percent, or bigger than earlier industry estimates of 5 percent. The trend is likely to continue in the colder months, he said.

With the latest contraction, average oil consumption may have fallen to only 300,000 barrels a day, the lowest level in eight years.

Government records showed daily oil consumption peaked at about 385,000 barrels a day in 1997 just before the Asian financial crisis. The rate has gone down to 370,000 barrels in 2000 before falling further to 323,000 in 2004.

Last year the oil market shrunk by 8 percent to less than 315,000 barrels.

The decline in oil consumption may be due to volatile oil prices, brought about by geopolitical tension in the Middle East, which supplies most of the country’s petroleum requirement.

Monitoring conducted by the Department of Energy showed that Dubai crude, the benchmark for oil refiners, has gone up to an average of $70.83 a barrel in August, while unleaded gasoline at the Mean of Platts Singapore (MOPS) has gone up to an average of $87.72. MOPS-based diesel also rose to an average of $88.40 a barrel.

Rising oil prices would have led to higher domestic landed costs if not for a stronger peso. Lotilla noted that every peso appreciation results in a P0.38 to P0.40 a liter reduction in domestic oil prices.

He also said that oil smuggling may have pulled down the sales of legitimate oil players.

The market contraction comes as another blow for local oil players, which have complained of lower sales volumes.

Ed Chua, Pilipinas Shell Petroleum Corp. chairman, recently said the company suffered a 10-percent reduction in sales in the first semester as Filipinos continued to shy away from the pump.

He said the downtrend is likely to continue in the coming months prompting the company to project lower margins for the year.

Chua said the rising cost of oil has prompted many households to cut on their consumption. Despite this, the company is still optimistic of replicating its P5.7-billion net profit last year.

For its part, Petron Corp. also suffered a considerable decline in sales in the first half. It said that the market only shrunk by 5 percent.

The company is relying heavily on the export of its refined products to neighboring countries for alternative revenue streams.

Is the reduction really because of smuggling, or a contracting economy? Isn't it possible that we pinoys have to find ways to survive? Example, more people are using alternative fuel for the cars: biodiesel, ethanol, and even LPG! I have noticed an improvement in my fuel economy by going easy on the gas pedal and limiting myself to 60-80kph on most occasions. Even home use, I expect people to find ways to cut down on electricity bills.

Ibang klase talaga itong mga oil players. They are worried about market share and their net income. E di ba lumabas sa news record net income ang mga ito?

[boybi]

malaki ang effect ng mga smuggled petroleum products dito. yung mga nakikita nyong mga small time na gas stations, yung mga nagsulputan sa tabi tabi, usually smuggled ang sources nila.

[mazdamazda]

hindi lang smuggled... pati yung mga pilfered fuel madami din... and usually ang nagbebenta nito yung mga maliliit na mga stations.

[CVT]

Napansin ko, bumaba ang aming electric bills by about P1000. Siguro, dahil hindi palaging naka-on ang aircon compressor dahil malamig ang panahon....

(OT- noticed though that for the same KWH consumption,- nagmahal ang singil ng kuryente by an average of P650 for our case)......

[Gumusut_Amige]

medyo OT: ang mahirap nito kahit araw-araw ang pagtaas ng oil prices, it follows also the Oil/Gas companies higher profit margin... hmmmm something fishy out there?

[1D4LV]

Napansin ko, bumaba ang aming electric bills by about P1000. Siguro, dahil hindi palaging naka-on ang aircon compressor dahil malamig ang panahon....

(OT- noticed though that for the same KWH consumption,- nagmahal ang singil ng kuryente by an average of P650 for our case)......

same here... from 3900 last month to 2300 this month... that's a lot.
although i can contribute that by using our aircon for only 6 hours/day, instead of the usual 12 hours/day.
tapos yung thermo setting namin was adjusted to 12 o'clock, instead of the usual 2 o'clock setting.

[larshell]

Isang dahilan Yong high price ng petroleum product. Ang dami na nag-convert from car to scooter or bike.

Syempre, if you are a businessman worry ka kapag mas-maliit ng profit mo.
You will not survive if you will let your margin to go low.

[Blackraven]

Perhaps the biofuels bill could help reduce fossil fuel consumption a bit.

If it gets passed by November or December this year, then by Jan. 2007, the consumption level could indeed go down further.

[rab]

may nakita ako sa tarlac, small time na gasoline station, 36 pesos ang unleaded nila.