By Myrna Velasco
The cost of cooking fuel or liquefied petroleum gas (LPG) which is a basic necessity in households will rise by P2.90 per kilogram this month or an aggregate P31.90 for the standard 11- kilogram cylinder.
The Department of Energy (DOE) said the increase in LPG prices has been generally attributed to the rise in contract prices in the world market.
As of press time, the LPG industry players that have already sent notifications on the price increase include leading player Petron Corporation, effective 12:01am on March 1 (Friday) for its Gasul brand; and was followed by Isla Petroleum and Gas Corporation for its Solane brand at P2.60 per kg (exclusive of value added tax) enforced at 6 a.m. also on Friday.
Petron also advised that its auto LPG prices are up by P1.65 per liter – which is the fuel used by the public transport sector, primarily taxi fleets.
“These reflect the international contract price of LPG for the month of March,” the leading oil firm stressed, referencing it generally to the rise of benchmark price of Saudi Aramco, which is the pricing reference followed by Asian markets.
Prior to this round of adjustment, the pick-up price of LPG had been at the range of P610 to P755 for the standard 11-kilogram tank in various outlets in Metro Manila.
Petron’s Gasul brand, in particular, was retailing at P690 to P696.00 per tank; while Isla Gas was at average P698 for the standard cooking cylinder. If inclusive of the latest price increase, Petron said its price range will now be at P721.90 to P727.90 for the 11-kilogram tank.
For Super LPG of Phoenix Petroleum Philippines, Inc., it was priced at P651 to P690 per tank prior to the March round of price hikes; while EC Gas of Eastern Petroleum had been at P702.50 to P755 for the 11-kilogram cylinder.
Saudi Aramco jacked up its contract prices to US490-$520 per metric ton for the month of March relative to factors exerting upward pressure on prices, including the increasing demand in many Asian markets.
It has to be noted that Saudi Arabia also cut generally its petroleum production in recent weeks and that added to the condition weighing down on global market fundamentals.