Filipino households can enjoy budget cuts in their cooking fuel this April as the price of liquefied petroleum gas (LPG) has been cut by P3.30 per kilogram (kg), inclusive of value added tax (VAT), or an aggregate P36.30 reduction for the standard 11-kilogram cylinder.
Leading industry player Petron Corporation reduced their prices effective April 1 (Thursday), based on the routine cost movement for the commodity, which is the start of the month.
Petron also advised customers on P1.85 per liter decrease on its auto LPG, an alternative fuel typically used by taxi fleets in the country.
Isla LPG Corporation also implemented cutback of P2.92 per kg on its LPG brand Solane, but that is still exclusive of VAT -- so when the taxes are added, its price adjustment will also match the P3.30 per liter reduction of Petron.
Other players in the industry are expected to follow the pricing trend already enforced by their competitors in the industry based on the sway of market competition, so their customers will continually patronize them.
This month’s cutback in LPG prices will be highly beneficial as most Filipino families are staying at home because of the enhanced community quarantine (ECQ) enforced by the government to stem the escalating spread of Covid infections – especially in the NCR plus bubble which covers Metro Manila, Rizal, Laguna, Bulacan and Cavite provinces.
The cost swing of LPG prices is anchored on the fluctuation of international contract prices that is benchmarked with Saudi Aramco, which is the pricing reference for markets in the Far East, including the Philippines.
Prior to this adjustment, the pick-up price of the standard LPG tanks at retail outlets had been at P643.00 to P946.00 for the 11-kilogam cylinder, as monitored by the Department of Energy.
For products retailed at petroleum pumps, it’s just gasoline products that will likely increase next week at the scale of P0.55 to P0.65 per liter; while diesel and kerosene prices may not change.
The gasoline price hike due on Tuesday (April 6), is mainly attributed to the twin impact of the ship blockage at Suez canal that was just re-floated last week and the decision of the Organization of the Petroleum Exporting Countries (OPEC) and ally-producers on gradually restraining production cuts starting next month.
Nevertheless, such events had been weighed against pressure on demand given the accelerating pace of Covid-19 infections still being suffered by many countries, especially in Europe.