Petron sees P1/kg rollback in LPG prices

Industry leader Petron Corp. projected yesterday a P1 per kilogram (kg) rollback in the price of liquefied petroleum gas (LPG) next month.

"The international contract price for LPG is seen to decrease by more than P1 per kilogram in December," Petron public affairs manager Virginia A. Ruivivar said.

Ruivivar said the cut in LPG prices may likely be reflected in the domestic market by the middle of December.

"As early as the second week of this month, we projected that the December contract prices of LPG would soften in the international market," she said.

Petron, partly-owned by the government, also said the prices of its LPG products are still the lowest in the market despite recent rollbacks implemented by its competitors.

The oil firm said the retail price for its Gasul brand is 50 centavos per kg or P5.50 lower for the standard 11-kg household cylinder than the prices of other oil companies.

Several industry players have rolled back prices of their LPG products by P1 per kg over the weekend. It can be recalled that other oil companies increased LPG prices by a total of P1.50 per kg in the past two weeks.

Petron, however, did not follow the price increases of its competitors, opting to keep its LPG prices stable.

The company added it is hopeful that its decision not to adjust its LPG prices would moderate the LPG prices of its competitors at the retail level.

"In a deregulated environment, market competition ultimately dictates LPG retail prices," Ruivivar concluded.

Latest industry data show that Petron has the biggest slice of the LPG market with 27 percent. Overall, the company has a 38.2 percent share of the market.

Since the beginning of the month, Petron has rolled back its petroleum pump prices five times. The cost of gasoline products has decreased by a total of P2.85 per liter while diesel is down by P2.60 per liter.

Caltex Philippines Inc. will roll back today the price of its LPG products by P1 per kg.

Caltex said the latest reduction in LPG prices is inclusive of the value-added tax (EVAT) impact.

Pilipinas Shell, in anticipation of the softening of the LPG contract prices next month also reduced its LPG product price by P1 per kg lasr Nov. 27.