Bad news for Filipino households celebrating the New Year, as the price of cooking fuel liquefied petroleum gas (LPG) had been up by P4.15 to P4.16 per kilogram (kg) or an equivalent of P45.65 to P45.76 for the standard 11-kg cylinder.
Leading oil firm Petron Corporation advised that its LPG price had gone up by P4.16 per kg (inclusive of value added tax) effective 12:01am on January 1 or at the strike of midnight while the country welcomes 2021.
Petron similarly increased the price of its auto LPG for vehicles by P2.33 per liter, noting that the latest price adjustments had been due to rally in international contract prices.
Phoenix Petroleum also notified customers that its LPG price had been raised by P4.15 per kg, just P0.01 lower than the main player in the industry. Its auto LPG had likewise been adjusted upwards to P2.35 per liter.
For the Solane brand of Delgado-owned Isla Petroleum and Gas Corporation, this went up by P3.73 per kg exclusive of VAT effective 6:00am on January 1. And if the 12-percent tax is included, that will sum up to P4.1776 per kg which is comparable to the adjustments of competitors.
The LPG sector had been the most competitive sub-segment of the downstream oil sector throughout 2020 because most Filipinos were confined in their homes because of the pandemic.
Prior to this round of adjustment, the pick-up price of LPG at Metro Manila retail outlets had been at P551 to P861 for the typical 11-kg tank, according to the Department of Energy’s monitoring report.
The price of LPG moves every first day of the month and this is benchmarked on the swing of prices ushered in by the contract prices (CP) of Saudi Aramco, the prime driver of LPG prices in Far East markets that include the Philippines.
According to the energy department, it is monitoring LPG price adjustments based on Saudi’s CP as well as the fluctuations on the peso-dollar exchange rate. And since the country is a very marginal market for LPG, it cannot in any way influence prices in the global market.
It has been tracked that LPG’s contract prices escalated alongside the upswing in crude prices; and it was mainly due to higher demand of countries experiencing severe winter season.