By Alena Mae Flores

The Big Three oil distributors yesterday announced a reduction in pump prices by P0.50 per liter, after a small player, PTT Philippines, cut its price by P1 per liter.

Among the three, Pilipinas Shell Petroleum Corp. was the first to announce the rollback for gasoline, diesel and kerosene, effective midnight. Petron Corp. and Caltex Philippines followed suit.

Early in the week, Shell and Total Philippines Corp. reduced prices by P0.50 per liter.

They also raised the price of cooking gas by P2 per liter. Total?s price increase for LPG took effect yesterday, a day after Shell hiked its LPG price.

LPG supply slackened last month owing to a surge in demand from taxi fleet operators, who shifted from gasoline, traders said.

But the government said the tightening supply of cooking gas will be addressed within the next two weeks. Energy Secretary Angelo Reyes said major suppliers of LPG were bringing in additional stock.

Consumers complained of shortage in supply prompting the Energy Department to inspect the facilities of LPG suppliers and make sure there was no hoarding.

?We are doing everything to correct and address the problem. There are some things that are beyond our control,? Reyes said.

Arnel Ty, president of the LPG Marketers Association, said earlier the suppliers miscalculated demand, which went up by 30 percent last month.

Roberto Kanapi, vice president for corporate communications of Shell, said the Asian region is experiencing supply shortage as a result of lower LPG production from refineries in China coupled with the traditional peak in LPG use for heating. ?Despite supply tightness in Asia Pacific, Shellane customers can be assured of continued supply,? Kanapi said.