LPGMA rolls back cooking gas price by P1 per kg

MANILA, Philippines - Households can expect prices of liquefied petroleum gas (LPG) to drop by P5 per kilogram (kg) this month due to lower contract prices abroad.

In a radio interview, Rep. Arnel Ty of the party-list group LPG Marketers Association (LPGMA) said cooking gas prices were cut by P1 per kg effective today.

Another price rollback will be implemented tomorrow, Ty said.

The two price markdowns translate to savings of P22 per 11-kg. LPG cylinder.

To date, prices of LPG range from P562 to P700 for every 11-kg cylinder, according to data of the Department of Energy (DOE).

LPGMA members are set to implement another P3 per kg price cut in the next few weeks.

“There will be more (rollbacks) definitely but we are still in talks if this will be one time or staggered. Within one or two weeks that will be completed,” Ty said.

Big LPG producers like Petron Corp. are expected to also reduce their prices due to competition.

LPGMA is a group of independent cooking gas retailers in Metro Manila and neighboring areas. Its members include Island Gas, Regasco Gas, Pinnacle Gas, Cat Gas, M-Gas, Omni Gas and Nation Gas.

Last week, LPGMA members cut prices of LPG by P1 per kg or by P11 per 11-kg cylinder.

Ty said the demand is expected to ease in August, which might result in more rollbacks.

Early last month, oil industry giant Petron and independent player Total Philippines Corp. slashed prices of LPG for household use by P5 to P5.50 per kg, exclusive of value-added tax.

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 oil companies.

However, for monitoring purposes, the DOE has requested the oil firms to report any price adjustments before implementation.