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| The LPG Marketers Association of the Philippines confirms a probable hike of up to P9.50 per kilogram for liquified petroleum gas prices in the country. |
A sharp rise in the prices of liquified petroleum gas (LPG) may soon hit the Philippines as the LPG Marketers Association (LPGMA) reveals the likelihood of an increase of up to P9.50 per kilogram. This increase, which is expected to take effect next week, will result in an increase of P104.50 for an 11 kg cylinder of LPG.
LPGMA President Arnel Ty, the final price for LPG will be determined on January 31 and will depend on the global contract price announced by Saudi Aramco. If the $157 per metric ton (MT) is the basis, it will be equivalent to P9.50 per kilogram, leading to a significant price increase for the country.
The root cause of the rising LPG prices can be attributed to the increasing demand for fuel in China, as well as the EU countries' persistent need for LPG from the Middle East due to the economic embargo placed by the EU on Russian oil and gas.
The Department of Energy (DoE) has reported that global contract prices for LPG inched by $40 per MT in December 2020, from $610 per MT to $650 per MT, which continues to be a contributing factor to the rising prices.
Filipinos are no strangers to spiraling fuel costs, as they are also bracing themselves for another rise in the prices of petroleum products. Pump prices of diesel and gasoline are expected to increase by P0.60 to P0.80 per liter and P1.20 to P1.40 per liter, respectively.
Based on the latest price monitoring by the DoE in Metro Manila, the cost of an 11-kilogram LPG tank ranges from P824 to P990, a 5-kilogram tank costs between P409 and P510, and P190 to P300 for a 2.7-kilogram tank. (Source: www.manilatimes.net)