LPG prices rise by steep P6-P7 per kilo

After successive increases in oil prices, the public will now bear the brunt of higher prices of liquefied petroleum gas (LPG).

Isla Gas LPG, Liquigaz Philippines Corp. and Petronas Energy Philippines Inc. reported to the Department of Energy (DOE) a steep P6 to P7 per kilogram (kg) markup in their prices effective 12:01 a.m. yesterday.

The increases reflected higher contract prices, said Zenaida Y. Monsada, director of the Oil Industry Management of the DOE.

Monsada said the contract prices in the world market rose by $164 per metric ton (MT), jacking up prices to $1,095 per MT.

Specifically, LPG dealer Petronas and Isla Gas, which bought the Shellane LPG brand from Pilipinas Shell Petroleum Corp. last December, added P7 per kg or a total of P77 per 11-kg cylinder. Liquigas increased prices by P6 per kg or a total of P66 per 11-kg cylinder.

Monsada said that prior to the recent price increase, an 11-kg cylinder of LPG costs between P765 to P858.

DOE Secretary Jose Rene D. Almendras said hopefully prices might come down when the market corrects.

Under the Downstream Oil Industry Deregulation Act of 1998, oil firms can price their products based on market forces so as to encourage competition. The deregulation law also prohibits the government from intervening or influencing the pricing schemes of the oil companies.

However, the government, through the DOE, has monitoring powers. For monitoring purposes, the DOE has requested the firms to report to the department before the price adjustments.