By Myrna Velasco
Leading oil firm Petron Corporation has trimmed its liquefied petroleum gas (LPG) prices by P6.25 per kilogram inclusive of value added tax (VAT) – or the equivalent of P68.75 for the standard 11-kilogram cylinder typically used in households for cooking.
The price rollback which was enforced effective 12:01am on June 1 (Saturday) was even bigger in scale than the initial estimate of more than P5.00 per kilogram prior to the conclusion of Friday trading in the world market.
For Isla Petroleum, the price of its Solane-branded LPG products had been cut by P6.00 per kilogram with VAT inclusion, also effective on Saturday at 6:00am.
Without the VAT components yet, the price adjustment of the product in Petron’s case was at P5.50 per kilogram; while for Solane, the base price was at P5.28 per kg.
At the same time, Petron reduced the price of its auto LPG by P3.45 per liter, hence, benefitting the vehicles using this alternative fuel for their daily drive across thoroughfares.
“These reflect the international contract price of LPG for the month of June,” Petron said. For the Philippines and other Asian markets, the benchmark being applied is that of Saudi Aramco, the biggest oil producer in the world.
Before the price cuts, the pick-up price for LPG tanks at retail outlets had been varying from P613.00 to P796.00 per tank, according to data from the Department of Energy.
Alongside the LPG price cuts, Phoenix Petroleum Philippines Inc. also advised that its gasoline prices will be cut by P1.75 per liter; and diesel by P1.05 per liter effective 12noon Saturday.
The softening of prices in the world market had pulled prices down domestically, which is beneficial for consumers that are depending heavily on imports.
Prior to this round of rollback, the prices of gasoline in Metro Manila as monitored by the DOE ranged from P47.54 to P61.96 per liter; diesel at P41.10 to P49.74 per liter; and kerosene at P47.92 to P55.65 per liter.
The DOE highlighted that “the weakening of global growth may continue to drag on the price of crude, amid the ongoing trade dispute between the United States and China,” the world’s two largest consumers of oil. (MMV)