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Manila Bulletin devider Business devider LPG prices up by P0.65/kg

LPG prices up by P0.65/kg

Published Sep 1, 2021 10:53 am

Household budget for cooking fuel will rise this month, as the price of liquefied petroleum gas (LPG) has been increased by P0.64 to P0.65 per kilogram (kg) effective today, September 1, or aggregate P7.04 to P7.15 price hike for the standard 11-kilogram cylinder.

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As of press time, the LPG firms that already sent notices on their prices include Petron Corporation for its Gasul brand; Phoenix Petroleum for its Super LPG; and Isla Gas for its Solane LPG.

Petron and Phoenix Petroleum implemented a price hike of P0.65 per kg while Solane had a slightly lower adjustment of P0.64 per kg. All price increases enforced by the oil companies are inclusive of value added tax (VAT) charges.

Auto LPG products, alternative fuels being used by the transport sector, were also increased. Petron raised its price by P0.36 per liter and Phoenix Petroleum effected a lower P0.35 per liter hike. LPG companies emphasized that this month’s uptrend in LPG prices had been due to the escalation of contract prices in the world market.

Based on a monitoring report of the Department of Energy (DOE), the pick-up price of LPG products at Metro Manila retail outlets prior to this adjustment had been at the range of P691.00 to P997.00 for the typical 11-kilogram tank.

LPG prices are adjusted every first day of the month – and such cost swing is anchored on Saudi Aramco contract prices, which is the pricing benchmark for Asian markets.

As noted by experts, the climb in contract prices for the propane and butane components of LPG had been attributed to rising demand, as some countries are already building up inventories for their heating requirements in the winter season.

Freight cost and the fluctuations in the Philippine peso-US dollar exchange rate have also been influencing the price movement for LPG commodities, according to the energy department.

LPG is a very vital commodity for Filipino households during these times, as most are still confined in their homes because of the continuing rigid movement restrictions being enforced by the government because of the lingering pandemic.

Related Tags

#LPG #PRICEHIKE #DOE #SAUDIARAMCO #CONTRACTPRICES #GASUL #SOLANE #SUPERLPG
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