LPG prices up by ₱0.90-₱0.91/kg

The price of liquefied petroleum gas (LPG) will go up by ₱0.90 to ₱0.91 per kilogram this month or ₱9.99 to ₱10.01 for the standard 11-kilogram cylinder.

Leading oil firm Petron Corporation over the weekend that its LPG prices increased by ₱0.90 per kg, inclusive of value-added tax, effective12:01 a.m. yesterday, July 1.

Auto LPG product, which is commonly used

by taxi fleets, also went up by 10.50 per liter.

“These reflect international LPG contract prices for the month of July,” the oil firm said as justification for this month’s upward adjustments.

Another player, Solane, advised that its LPG prices are now slightly higher by 10.91 per kg effective 6 a.m. on Sunday.

LPG price adjustments follow the cost swings in international contract prices, which are benchmarked on Saudi Arabia contract prices, a pricing reference for Far East markets including the Philippines. This contract price is often set by the oil kingdom-producer Saudi Aramco at the beginning of each month.

Last month, Saudi Aramco’s LPG contract prices had been set at US$560 (129,870) per metric ton for both propane and butane products.

The Department of Energy (DOE) said that aside from monitoring the monthly adjustments in LPG prices at the oil firm’s outlets, it has also been tightening regulations on the safe use of such commodity for households and business establishments.

Even for LPG’s use in vehicles, this will be reviewed according to Energy Secretary Alfonso G. Cusi, because there have been complaints of safety as well as health-related concerns on its deployment for the transport sector.

The DOE, though, has yet to concretely lay down its review parameters on LPG vehicles, in keeping also with the government’s target to broaden its base in the public transport sector.