Adhering to less frequent price adjustments at the pumps, small oil player Unioil Petroleum Philippines Inc. implemented Monday a onetime and big-time rollback of P4.75 per liter for gasoline and P3.50 per liter for diesel.

The new price cuts took effect at 2:01 p.m. Monday, Unioil said in an announcement.

Also Monday, Unioil also reduced its price of kerosene by P1.50 per liter.

All product cost reductions are already inclusive of value added taxes (VAT), the oil firm said in its advisory to the media.

While Unioil’s competitors in the downstream oil industry have been adjusting their prices at once or twice-a-week frequency, it was observed that the company did not go along with the price rollbacks or increases in some weeks.

Given the differing pricing strategies by the oil companies, consumers were advised to compare the retail pump prices before filling in their tanks to ensure that they are getting the best price and service from the gasoline stations.

The last time Unioil had a price rollback was last June 29, for a price cut of P1.25 per liter for gasoline and P1.00 per liter for diesel. With that adjustment, the price of its unleaded gasoline then was at R39.19 per liter; while its diesel brand was at P27.90 per liter.

Prior to the big-time rollback announcement of Unioil, most of the oil companies reduced their product prices by P1.50 per liter over the weekend to reflect weekly movement in international oil prices.

The series of price reductions though were not enough to appease the transport sector which still brought their grievances to the policymakers’ attention through din of protests in the streets.

With prognosis of later-than-expected global economic recovery, it is seen that weak oil prices may linger for some time. After prices soared to $73 per barrel last month, it dropped again to $61 per barrel this July.

While lower oil prices may temporarily put ‘extra money’ in the pocket of consumers, it was opined that the downside of this phenomenon will be lack of appetite to invest in new oil and gas field developments.

Given current trends, experts and market watchers are raising fears that the supply glut may just be temporary. When the economy picks up and the available oil is consumed, the industry may again struggle over scant supply if investments will not flow due to the prevailing market overhang.