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Manila Bulletin devider Business devider Big time LPG price hike announced

Big time LPG price hike announced

Published Oct 1, 2021 08:43 am

A big time price hike of P7.35 to P7.40 per kilogram of cooking fuel liquefied petroleum gas (LPG) would be implemented in two tranches this month, industry players said.

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The hefty increase would result in an aggregate price increase of P80.85 to P81.40 for the standard 11-kg tank.

LPG industry players announced that the price increases will be implemented into two tranches to cushion the cost impact on consumers. The first one will be at P4.00 per kg on Friday, Oct.1, and the second batch of P3.35 to P3.40 per kg will be enforced by October 8.

Leading player Petron Corporation stated that its price hikes for Gasul will be at P4.00 per kg by October 1 and P3.40 per kg by October 8. Phoenix Petroleum’s Super LPG prices will climb by P4.00 per kg on October 1 and P3.35 per kg by October 8. while Solane LPG costs will similarly hike P4.00 per kg by October 1 and P3.36 per kg alsp on October 8.

Petron and Phoenix Petroleum similarly indicated that the prices of their autoLPG fuel for vehicles will rise by P2.24 to P2.25 per liter by October 1. There will be additional increase of P1.90 per liter by October 8, Petron said.

As culled from a report of the Department of Energy (DoE), this is already the eighth time that LPG prices will be on upswing this year. In contrast, there were only two instances of price rollbacks implemented, primarily in the months of April and May.

In the seven months of upward adjustments in LPG prices, the accrued increase had already been pegged at P19.38 per kg or a total of P213.18 for the standard cylinder being used in households.

Prior to this round of cost escalation, the pick-up price of LPG products in various retail outlets in Metro Manila had been at the range of P717.04 to P999.15 for the 11-kilogram tank, according to the DOE.

The energy department reiterated that LPG price adjustments in the country are mainly benchmarked on the swing of the Saudi Aramco LPG contract prices as well as the fluctuations in the Philippine peso-dollar exchange rate.

The cost movements for cooking fuel are reflected every first day of the month and that will remain constant at the duration of that particular 30-day period.

LPG remains a very essential commodity to Filipino consumers. This need was clearly manifested during the pandemic as most families depend on home cooking due to continued movement restrictions while the country has yet to survive the wobbling impact of the health crisis.



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