Philippine Association of LPG Cylinder Manufacturers Inc. president Mercedita Pastrana, said the projected low growth can be traced to a decline in demand particularly in the industrial sector.
Pastrana noted that prior to the Asian financial crisis in 1997, the growth of the LPG market was placed at 15 to 20 percent, down from 20 percent in 1996.
After the financial turmoil which affected the entire ASEAN market, she said the growth in the market started to deteriorate.
Last year, she said the growth was recorded at a mere seven percent, with the Big "3" even incurring a negative three percent.
Pastrana said the LPG industry is projected to post sales to talling P4 billion this year, slightly up from last year’s P3.6 billion.
The demand for LPG cylinders, on the other hand, remains bullish. With the news on deregulation and the prospect of an increase in demand for LPG cylinders, new manufacturers emerged engaged in the production of brand new LPG cylinders. From only three in 1996, the number of manufacturers increased to 10 as of December 1999.
The number of independent refillers also dramatically increased from 20 to more than 100 at present.