LPG prices seen going up P2-P3 per kilogram

MANILA, Philippines — Consumers will pay more for liquefied petroleum gas as the industry projects a slight increase in September.

Pump prices, meanwhile, will go down today after two consecutive weeks of increases.

At Seaoil stations, gasoline, diesel and kerosene prices will decline by P0.32, P3.83 and P3.84 per liter, respectively.

Shell will cut prices of gasoline by P0.30 per liter, while those of diesel and kerosene will fall by P3.80 per liter.

Regasco president Arnel Ty told The STAR yesterday that LPG prices are estimated to rise between P2 and P3 per kilo, translating to an increase of P22 to P33 in a standard 11-kilo cylinder.

Final price adjustments will be announced by the Department of Energy as the Philippines remains in a state of national energy emergency.

In an interview with radio dzMM, Ty said higher shipping costs and a weaker peso drove the likely increase.

“The dollar conversion rate was higher in August compared to the previous month, which means the value of the dollar is higher than the peso and its impact is an increase of around P0.30 per kilo,” Ty said.

“As for shipping costs in August, it is higher by $40 per metric ton due to three weeks of consecutive rise in crude oil,” he added.

The peso continues to depreciate, breaching the P62-per-dollar level on Aug. 27 for the first time.

Analysts see the peso weakening further as crude prices edge up.

Uncertainties in the Middle East are keeping global crude prices elevated, with benchmark Brent crude hovering around $90 per barrel in Monday’s trading after the United States attacked Iran for the first time in a month.

Ty said LPG and kerosene are subjected to a 15-day price freeze in areas under a state of calamity.

He urged local government units to make state-of-calamity declarations before the scheduled hikes. — Neil Jayson Servallos