DOE contradicts forecasts: LPG prices going down

MANILA, Philippines — The Department of Energy (DOE) has defied industry forecasts, ordering a rollback in liquefied petroleum gas (LPG) prices this month.

Despite higher international contract prices, consumers can still expect LPG prices to drop by P0.40 per kilo, equivalent to a reduction of P4.40 for a standard 11-kilo cylinder.

The rollback runs counter to earlier industry estimates of an increase of P2 to P3 per kilo.

The DOE said freight costs declined to $94.41 per metric ton from $120.82 per MT, while the average peso-dollar exchange rate also eased to P61.40 from P61.59 month-on-month.

Together, these factors pulled down the overall landed cost of LPG.

“For families who rely on LPG to prepare their meals every day, every peso saved can go toward other household needs. The reduction may be modest, but consumers should benefit whenever market conditions bring costs down,” Energy Secretary Sharon Garin said yesterday.

This month, international LPG contract prices rose mainly on higher crude oil costs, fueled by ongoing geopolitical tensions and supply constraints in the Middle East. Stronger Asian demand ahead of the winter season also added upward pressure on prices.

“Consumers should be able to understand what drives the prices they pay. We will continue to provide clear information on LPG price movements so households can make informed decisions and better manage their expenses,” Garin said.

Amid the ongoing energy emergency, the DOE has the authority to set minimum rollbacks and maximum price increases for fuel products, including gasoline, diesel and kerosene.

Currently, an 11-kilo LPG cylinder is estimated to cost between P1,031 and P1,536, although actual retail prices may vary depending on the brand, location and other market factors.