HOUSEHOLDS should expect a sigh of relief beginning this month as the price of liquefied petroleum gas (LPG) was slashed, effective Tuesday, September 1, the Department of Energy (DOE) announced.
In an advisory, the DOE said the price of a typical LPG tank was rolled back by P0.40 per kilogram. This is equivalent to about P4.40 reduction for a standard 11-kilogram LPG cylinder.
The DOE explained that the LPG price rollback came despite an increase in the international LPG Contract Price (CP), “which rose from $634.00 per metric ton in August to $649.50 per metric ton in September” as this was more than offset by lower freight costs as it declined from $120.82 to $94.41 per metric ton as well as the lower average peso-dollar exchange rate from P61.59:$1 in July to P61.40:$1 in August.
The Energy department said both factors “brought down the overall landed cost of LPG, resulting in the September price rollback.”
“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,” said Energy Secretary Sharon Garin.
The DOE said international LPG contract prices are determined by global market conditions.
For September, the agency said the increase in the contract price was driven mainly by higher crude oil prices, geopolitical tensions and supply constraints in the Middle East, and stronger Asian demand ahead of the winter season.
“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,” said Garin.
For September, the DOE said domestic retail prices of an 11-kilogram LPG cylinder are estimated to range from P1,031 to P1,536, although actual prices may vary depending on the brand, location, and other market factors.
The Energy department, moreover, encouraged households to compare prevailing LPG prices in their area and purchase only from authorized dealers and retailers to ensure product quality and safety. (GMA News)
