Major players Pilipinas Shell Petroleum Corporation, Petron Corporation and Caltex Philippines, Inc., announced their price cuts at almost the same time, all effective 12:01 of January 1, 2006.

"Petron will implement a R0.50 per liter rollback in pump prices (for Blaze, XCS Plus, Extra Unleaded, Diesel Max, Kerosene regular gasoline) effective January 1, 2006," the oil firm stated in its advisory to the media.

The lead of the giant oil companies was immediately matched by independent player Seaoil Petroleum Corporation with the reduction also due on January 1.

The other oil companies indicated that they will likely cut prices also; but they have yet to officially announce price adjustments.

Somehow, this round of rollback is seen as could be the last one before consumers would again face the prospect of new round of price hikes next year with the scheduled increase of value-added tax charges to 12 percent, from the prevailing 10 percent; and recent indications of new round of up-ticks in global oil prices, especially if the Organization of Petroleum Exporting Countries (OPEC) would heed call to trim down their production by roughly 1.1 million barrels per day.

Fears have been raised that if the current scenario of supply far exceeding demand persists, this will trigger price slump; thus the oil cartel is already being called upon to avert such situation.