Manila: The “Big 3” oil companies reduced their petorl and diesel prices by five pesos and two pesos per liter, respectively, in their biggest cuts yet since world oil prices started falling.

Petron Corp, Pilipinas Shell Petroleum Corp and Chevron Philippines (formerly Caltex) cut their prices effective yesterday after small oil players implemented a rollback of up to P6 per liter earlier this week.

Virginia Ruivivar, Petron public affairs manager, said they have reduced since August this year their gasoline and diesel prices by 24.50 pesos and 21.50 pesos per liter, respectively.

PTT Philippines Inc. also followed the oil majors’ move.

To catch up with the prices of competitors, Seaoil rolled back anew its gasoline products by P4 per liter and kerosene by one peso per liter. Eastern Petroleum Corp the other day rolled back the price of its diesel by one peso per liter and P3 per liter for gasoline. Total, on the other hand, has reduced pump prices of gasoline and diesel by five pesos and two pesos per liter, respectively.

Fernando Martinez, Eastern chairman, said the move would bring down their diesel price to 36 pesos per liter and its gasoline to 38.07 pesos. “This brings to four pesos the total rollback for diesel and to six pesos for gasoline products for November,” he said.

Energy Secretary Angelo Reyes lauded the oil players’ move to further reduce their pump prices.

Reyes, who is scheduled to call a stakeholders’ meeting with the oil firms early next week (Tuesday), believes that there would be more oil price cuts in the coming days.

Consumer and Oil Price Watch chairman Raul Concepcion, meanwhile, said that oil refiners Shell and Petron, and oil importers Caltex, Total, Seaoil, Flying V, and others agreed that there are no more under-recoveries as of October 31.

“Starting November 1 thereafter, their rollback or increase will be based on the moving six weeks weighted average of Dubai crude for Shell and Petron,” Concepcion said. The July peak price for Dubai crude was $140 per barrel and the six-week weighted average from October 17 to November 21 is $56.76 or a drop of $83.24 or 59 percent. The average forex is 48.80 pesos. Concepcion said the pump prices should reflect this price reduction.

“We expect a rollback on diesel and gasoline by at least six pesos in two tranches, or three pesos for the week of December 5 and another three pesos for the week of December 12, or a total of six pesos,” he said.

In the case of the new players, he said the moving four weeks weighted average as of November 21 is $56.03 for unleaded gasoline and $76.57 diesel, which the pump prices should also reflect. As of November 25, 2008, average-to-date price of Dubai crude dropped to $50 per barrel from $67 per barrel in October.

Based on the Department of Energy (DOE) monitoring, gasoline and diesel prices at the Mean of Platts Singapore (MOPS), benchmark of oil importers, declined to $49 and $74 per barrel respectively as of Nov. 26 compared to $80 per barrel and $89 per barrel, the previous month.