Bad news will cut across Filipino households starting this long weekend, as the price of cooking fuel liquefied petroleum gas (LPG) will increase by P3.20 per kilogram (kg) or an aggregate increase of P35.20 for the standard 11-kg cylinder.
The price hike for LPG will stay for the rest of November, as the cost movement of this commodity is implemented every month.
As of press time, the first industry player to announce its price hike had been leading oil firm Petron Corporation; and this will be effective on November 1 (Sunday) at 12:01am; while its competitors are anticipated to follow.
Petron similarly announced that the price of its autoLPG for vehicles will rise by P1.79 per liter; and it will also be enforced starting Sunday.
The company said it is reflecting such adjustment in LPG prices based on the swing of prices in the world market – and this was anchored mainly on the movement of the Saudi Aramco LPG contract prices.
Based on the monitoring of the Department of Energy (DOE), the prevailing pick-up prices of LPG products at retail outlets hover at P571.00 to P731.00 for the standard tank used by many Filipino homes for cooking.
The department said it is both assessing the Saudi Aramco-hinged international contract prices and the fluctuations in the peso-dollar exchange rate in “determining the price adjustments of LPG in the domestic market.”
It explained that price change is effected every start of the month; and this will stay for the whole month, as has already been the practice in the Philippine LPG sector.
As indicated by the energy department, the escalating prices of LPG in the world market had been generally traced to the cooler-than-average winter season that might be experienced in various parts of the world – and this will likely boost demand for heating.
Based on data of S&P Global Platts Analytics, LPG demand this year may jump to 27.4 million metric tons, which is 4.0-percent higher from last year’s level.
In the Philippines, it has to be noted that LPG thrived as a very essential commodity during the enforcements of lockdowns due to the pandemic – and that was because most families are staying at home, hence, their need for cooking fuel had gone up.