No LPG price adjustment yet for Petron

Petron Corp., the country’s largest oil refiner, has no plans yet to increase the price of its liquefied petroleum gas (LPG) or cooking gas, a company official said yesterday.

"At the moment, we will not be adjusting our LPG price. Maybe, next week we will decide if we will follow suit," the official said.

Publicly-listed Petron, partly-owned by the government, currently accounts for 25 percent of the country’s LPG market.

Pilipinas Shell Petroleum Corp., Caltex Philippines Inc. and Total Philippines Inc. have raised their LPG prices last June 16 by P1.70 per kilogram or P18.70 per 11-kg. cylinder.

Shell external affairs general manager Roberto Kanapi said they have increased their LPG price "as a result of higher LPG international contract prices for June 2004".

Total and Caltex also blamed the rising contract prices of LPG in the international market.

The LPG industry has grown as an industry following the deregulation of the downstream oil market in 1998.

Of the entire LPG market, the small independent players have captured more than 30 percent of the market. The bulk of the small oil players’ share is cornered by Total, Pryce and Liquigaz.

LPG requirement, in fact, comprises about 10 percent of the country’s oil demand with an annual average growth of 7.5 percent.

Oil firms have been jacking up the prices not only of their LPG products but also their pump products due to the continuing rise in world crude prices.

Of the P1.10 per liter projected increase for the month of May which will be recovered in June, the oil firms only recouped 90 centavos per liter when they raised their prices a few days ago.

This means that the oil firms still have to recover 30 centavos more on top on the expected under recovery for the month of June.