LPG Prices May Surge by P10-P25 Per Kilo in October

MANILA, Philippines — Liquefied petroleum gas prices could rise by P10 to P25 per kilogram in October as higher international contract prices and shipping costs add pressure to local rates, an industry group said Monday, September 21. LPG Marketers Association president Arnel Ty said that the final adjustment would depend on global price movements through the end of September, but current trends point to a relatively steep increase. Ty said international LPG contract prices have risen by about $70 per metric ton, equivalent to roughly P4 per kilogram locally. Higher freight costs climbing to $300 could push the eventual increase further. "Ang tinitignan na po namin, as a whole, lahat na po, it is on the range of P10 to as high as P25," Ty said in an interview with dzMM. ("What we're looking at overall is an increase ranging from P10 to as high as P25.") Final October prices will be determined at the end of the month, with adjustments taking effect on October 1. LPG prices have remained under pressure as the continuing conflict in the Middle East disrupts shipping and drives up freight costs around major energy routes, including the Strait of Hormuz and the Bab el-Mandeb Strait. Shipping traffic through the Strait of Hormuz has remained well below normal levels in recent weeks, while tensions around the Bab el-Mandeb have also added risks and costs to global energy shipments. Separately, Republic Gas Corp. (Regasco) implemented a P4-per-kilogram increase Monday. Ty said the adjustment reflected the company's earlier computation for September, which had differed from the Department of Energy's P0.40-per-kilogram rollback for the month. "Because of what we have presented including 'yung mga binayaran naming buwis sa BIR at saka sa Bureau of Customs, it really reflects na meron pong pagtaas sa international market. So ngayon na lamang po nila inilabas o inaprubahan 'yung aming request for price increase," Ty said. ("Based on what we presented, including the taxes we paid to the BIR and Bureau of Customs, it really reflects an increase in the international market. Our request for a price increase was only released or approved now.") Regasco earlier said it received approval from the DOE on Friday to implement the P4-per-kilogram increase beginning September 21. The adjustment is separate from the projected October increase, which will depend on international contract prices, freight costs and other market factors at the end of September. Source: Philstar Nation