LPG prices to rise ₱18 per kilo in three-stage October increase

October 5 ------ Household budgets are set to face renewed pressure as liquefied petroleum gas (LPG) prices climb by a total of ₱18 per kilogram this month, even as the government temporarily suspended the excise duties for the fuel.

The price increases will be phased across three weeks to absorb the impact of mounting geopolitical conflict in the Middle East, according to Arnel Ty, founder of the LPG Marketers Association. The adjustment begins with an immediate ₱10 per kilogram increase on Oct. 3, followed by a ₱5 spike on Oct. 10 and a final ₱3 rise on Oct. 17.

Retail prices for a standard 11-kilogram cylinder are expected to range between ₱1,425 and ₱1,550 depending on the retailer, Ty said. The sharp upward revision comes despite policy interventions from the Department of Energy (DOE) and the Bureau of Internal Revenue (BIR) designed to shield consumers from external shocks.

Tax relief measures on LPG and kerosene were enacted to offset international market turbulence caused by geopolitical tensions involving the United States and the Middle East. Under the current framework, standard excise taxes will resume either three months after implementation or one week after benchmark Dubai crude averages below $80 per barrel for a full month, whichever milestone occurs first.

The surge in cooking gas presents a contrasting picture against liquid transport fuels, where price signals remain divergent. Industry forecasts point to a brief respite for transport operators, with diesel prices expected to decline by ₱1.00 to ₱1.20 per liter on Tuesday. Gasoline drivers, however, face further cost pressures, with pump prices projected to rise by ₱1.80 to ₱2.00 per liter. The DOE is scheduled to issue official prescribed price adjustments for oil companies early next week.

Source: mb.com.ph