By Myrna Velasco
Filipino households will get financial relief on their cooking fuel budget this month as the price of liquefied petroleum gas (LPG) is anticipated be rolled back by P5.00 to P5.60 per kilogram this month.
For the 11-kilogram cylinder used by households, that will entail total cost reduction of P55 to P61.60, according to initial calculations provided by the industry players.
Nevertheless, LPG firms qualified that trading will still wind up at 4:00pm on Friday (May 31), hence, the actual adjustment may still have changes – although the final number seen will be price cut of more than P5.00 per kilogram.
For gasoline products, the calculated rollback next week will also be hefty at approximately P1.00 per liter; and diesel by P0.70-P0.80 per liter, according to the oil companies with them qualifying though that such had been based on just the four-day outcome of trading in the week.
The cost of LPG in the country moves on a monthly basis, and often hinged on the contract prices of Saudi Aramco, the pricing reference being employed by Asian markets.
With this downtrend in cooking fuel cost, it is similarly anticipated that the price of LPG used in automobiles – primarily the taxi fleets in the Philippines, will also be reduced this month.
The price rollbacks are due to be enforced this June 1 (Saturday), based also on the latest mandate of the Department of Energy (DOE) that the cost of LPG commodities be adjusted every first day of the month.
In a Circular issued by the DOE, it similarly directed that pricing adjustments for liquid fuels being retailed at the pumps be implemented every Tuesday of each week.
From hereon, the energy department indicated that it must take the oil companies to task that all of their pricing adjustments shall be data-based and up to the dictum of transparent pricing parameters.
“These enhancement will provide the DOE and other relevant government agencies with the necessary data to formulate proactive and appropriate policy initiatives for the benefit of the consumers and the downstream oil industry,” the department asserted.
Local petroleum prices often swing depending on cost movements in the world market – and June will be an interesting period for oil markets due to array of anticipated developments.
Most watched is the scheduled meeting of the Organization of the Petroleum Exporting Countries (OPEC) and the Russian-led alliance of oil producers, chiefly if they would finally end the “market rebalancing strategy” that had been leaning on imposed production cuts.