OIL distributors cut pump prices by as much as P1 a liter, but Shell raised the price of cooking gas by P2 a kilogram following a reported shortage overseas.

PTT Philippines cut its pump prices by P1, while Caltex, Petron, Shell and Eastern Petroleum trimmed theirs by P0.50 a liter.

?We are implementing the lower prices in the pumps to reflect the downturn in global prices,? PTT marketing officer Roby Tanjuatco said.

?With this latest rollback, we aim to move towards implementing timely weekly price adjustments,? Shell chairman Edgar Chua said.

Shell spokesman Bobby Kanapi said the increase in the price of cooking gas was due to higher costs and tight supply.

?The contract price for LPG increased by $40 per metric ton in January 2009,? Kanapi said.

Cooking gas now sells at P400 to P475 per 11-kilogram tank.

Abroad, oil prices were down in Asian trade on Tuesday amid continued pessimism over the state of the global economy, analysts said.

New York?s main futures contract, light sweet crude for February delivery, was down 77 cents to $36.82 a barrel on the New York Mercantile Exchange.

Brent North Sea crude for February delivery declined 39 cents to $42.52.

?Some of the very supportive factors that have kept oil prices high have gone away,? said Dave Ernsberger, senior Asian editorial director with Platts energy information group.

The bleak economic situation had exacerbated the traditionally weak demand for oil at this time of year, Ernsberger said.

Prices had tumbled last week after a brief bounce above $50 on the back of jitters over the Russia-Ukraine gas standoff and the ongoing fighting in Gaza.

Russia had accused Ukraine of illegally siphoning off gas destined for Europe after Moscow cut off gas supplies to Ukraine?s domestic market on New Year?s Day.

?The gas conflict in Europe is one of the reasons that Brent crude is trading at a premium to WTI,? the West Texas Intermediate crude traded in New York, said Phil Flynn at Alaron Trading.

?The bottom line is that we have a glut of crude globally. The Brent crude may fall after the EU situation is handled,? he said.

Russia was due to resume pumping gas to the European Union on Tuesday. Alena Mae S. Flores with AFP