P1.00/kg rollback in LPG prices to boost household budgets this April

The heat will be turned down on household budgets for their cooking fuel this month, as the price of liquefied petroleum gas will be reduced by P1.00 per kilogram (kg) or equivalent P11.00 for the standard 11-kilogram cylinder, as advised by the industry players.

Petron implemented its reduced LPG prices effective April 1; while Solane sent advisory on its price adjustment that will be effective April 2 (Tuesday).

For residential consumers patronizing the LPG products of Regasco, the declared price cut had been lower at P0.30 per kg or P3.00 for the 11-kg cylinder, hence, it is very vital that families would exercise their power of choice on purchasing their cooking fuel.

In parallel, for those using autoLPG as alternative fuel in their vehicles, they will also experience refreshing financial relief with the P0.50 per liter reduction in the price of this commodity, as announced by major player Cleanfuel.

Based on the monitoring of the Department of Energy (DOE), the average pick-up price of LPG in various retail outlets in Metro Manila as of March this year had been on the range of P830.00 to P1,068.00 for the typical tank used by households.

The swing of LPG prices in the country is generally referenced on the move of international contract prices of Saudi Aramco, which is the benchmark for the Asian markets.

As explained by the energy department, the Saudi Aramco contract price as well as the monthly changes in foreign exchange (forex) rate serve as key determinants in the adjustments of LPG prices in the domestic market.

The LPG price adjustments will stay for the rest of the month, unlike the other fuel commodities that are moving up or down weekly, hence, families will have longer time to enjoy savings from this month’s lower LPG prices.

Apart from households, LPG is also a key commodity used at commercial establishments – primarily for restaurants as well as tourism-related entities like hotels and resorts for their cooking needs.

Given that the Philippines is highly dependent on LPG imports, its pricing would remain highly vulnerable on cost swings in the world market.  — Myrna M. Velasco