‘No LPG shortage, but prices to spike’

MANILA, Philippines — While the country’s liquefied petroleum gas (LPG) supply remains adequate, the price of an 11-kilo tank is expected to approach P1,500 next month.

LPG Marketers Association Inc. (LPGMA) founder Arnel Ty said LPG prices are set to increase by at least P30 per kilo due to rising shipping and contract costs amid the global oil crisis.

“The price increase will be the highest in history,” Ty said in a message to reporters yesterday.

The adjustment, equivalent to P330 for an 11-kilo tank, will be implemented on a staggered basis, with P20 per kilo on March 28 and an additional P10 per kilo on April 1.

Ty, also president and CEO of LPG retailer Regasco, said the increase is meant to cover the cost of new products, which require higher capitalization due to rising international prices.

Currently, an 11-kilo LPG tank sells for up to P1,135 in Metro Manila, according to the Department of Energy.

Latest DOE data also showed that the country’s LPG stocks would last for only 23 days.

PryceGas, however, does not anticipate an immediate shortage, noting that its stocks are sufficient through the end of April.

In an advisory, Solane has assured the public that it is actively securing new supplies to “ensure sustained availability of our product.”

LPGMA member companies, meanwhile, have 30 to 40 days’ worth of inventory, Ty noted.

Citing a survey that they commissioned, Ty said five out of every 10 Filipino households use LPG for cooking.

Notably, the country is estimated to consume around 150,000 metric tons of LPG per month.