LPG prices to go up starting today

MANILA, April 1 ------ From gasoline pumps to the kitchen stove, the oil crisis is now affecting even everyday cooking.

Liquefied petroleum gas (LPG) prices are set to rise starting today April 1, the LPG Marketers’ Association (LPGMA) said, adding more pressure to household budgets already strained by rising fuel costs.

LPGMA said prices may increase by as much as P10 per kilogram this month, to be implemented in staggered adjustments by dealers. The two-part hike is expected to push the price of an 11-kilogram cylinder to as much as P1,500. “Nagdesisyon na po kami to implement in two tranches—isang P5 by April 1, and another P5 on April 7… dahil sa direktiba ng Department of Energy (DOE) na hindi pwedeng singilin lahat,” said LPGMA President Arnel Ty.

Ty said that aside from the base price of LPG, shipping costs are also rising due to the ongoing conflict in the Middle East. “Yung distance na tina-travel ng barko ngayon mas malayo kaysa nung dati na kumukuha lang sa Middle East. Ngayon kasi kumukuha (yung traders) from America, from Australia, from Canada, from Russia,” he said.

He added that traders are now engaged in bidding wars to secure supply. “Ang may kontrol po ng merkado ngayon ay yung mga naglalaban-laban na mga bansa. Kung hindi ho tayo lalaban sa bidding, wala po tayong makukuhang produkto,” he said.

Ty noted that the Philippines is also sourcing LPG from South Korea and Japan, both of which have emergency reserves of up to 250 days. Despite rising LPG costs, the DOE has not yet imposed any price control measures, focusing instead on ensuring that supplies are augmented.

LPG STOCKPILE

The Philippines’ LPG inventory is currently estimated to last around 40 days. The DOE aims to raise this to at least a 60-day buffer and has tasked the Philippine National Oil Company (PNOC) to assist with procurement. So far, PNOC has already ordered over a million barrels, or more than 165 million liters of diesel from various countries. “The next batch that PNOC is trying to look for is actually two types of fuel— LPG and jet fuel,” said DOE Secretary Sharon Garin during a press conference.

The agency said the two-and-a-half million barrels of crude oil ordered by Petron Corp. from Russia will also augment the country’s stockpile, but it still needs to be processed. “Around 18 percent to 19 percent of the production ratio of Petron goes to the production of LPG,” said DOE Oil Industry Management Bureau Director Rino Abad. While efforts to secure more fuel supplies continue, the LPGMA has also offered consumers some practical tips to save on usage.

For example, cooking multiple ingredients at the same time and turning off the main valve of the tank when not in use. “Makakatipid naman, in the end, ng probably 10 to 20 percent ng kanilang consumption,” said Ty.

Source: news.abs-cbn.com