LPG inventory issues seen
‘There is a high chance of LPG price hike but I don’t have a report on that yet and for sure it will ease out immediately in January until March’
While hefty fuel price cuts are projected this week, the Department of Energy said the prices of liquefied petroleum gas products may inch up anew in December due to inventory issues.
During a radio interview on Sunday, DoE Oil Industry Management Bureau director Atty. Rino Abad pointed out that the latter months of the year are historically the so-called “impact period of LPG inventory build-up.”
Abad said there is a high chance of an LPG price spike next month but noted that costs will likely ease throughout the first quarter of 2023.
“There is a high chance of LPG price hike but I don’t have a report on that yet and for sure it will ease out immediately in January until March,” he said.
This month, the prices of LPG products went up by P3.50 per kilogram and AutoLPG prices by P1.96, which broke the six-month price cuts.
Meanwhile, Assistant Director Rodela Romero, Oil Industry Management Bureau confirmed that fuel prices will be rolled back next week.
“Based on four days of trading in Singapore, based on the Mean of Platts Singapore which is a benchmark of Asian countries, we can expect a rollback in all petroleum products. Hopefully, this Friday’s trading will add to the said rollback,” Romero said.
She also noted fuel inventories in the United States have significantly increased.
Based on the oil trading data from Monday to Thursday, an industry source told the Daily Tribune on Friday that both diesel prices will be slashed by around P3.70 to P3.90 per liter. Gasoline prices, on the other hand, will be down by around P1.10 to P1.30 per liter.