FPI wants LPG distributors to be investigated

MANILA, Philippines - The distributors of liquefied petroleum gas (LPG) is a cartel and should be investigated by the government, the Federation of Philippine Industries (FPI) said.

“The LPGMA (LPG Marketing Association) is a cartel because they set the prices together and they announce any price increases or decreases as a group,” FPI chairman Jesus L. Arranza told reporters. “This is price fixing because there is a single price for all.”

The website wikipedia.org defined a cartel as a formal explicit agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production.

According to Arranza, whenever there are any price adjustments on the prices of LPG, the LPGMA comes out as a group to announce the movement.

“An association announcing the prices is called price fixing because they all agree on the prices. Where is the competition if they agree on the prices,” he asked. “This is a blatant violation because they are obviously a cartel.”

He noted that even oil firms do not announce price adjustments as a group. Oil players announce their own price increases. “If accidentally oil firms have the same increases that is okay,” he said.

Arranza said that nobody can immediately conclude that there is price collusion among oil firms because they do not act as a group unlike the LPGMA.

He said that the perceived cartel among cement firms is not as glaring. Although there is an industry association for cement manufacturers, the Cement Manufacturers Association of the Philippines (CEMAP), the group does not announce the price movements.

At the same time, Arranza is fighting the attempt of LPGMA to have representation in the House of Representatives through the party list. LPGMA Party-list obtained one seat but Arranza has petitioned for the disqualification of the party before the Commission on Elections (COMELEC).

“Are the dealers of LPG marginalized? They are rich people selling LPG,” Arranza said. He said there is still no decision on disqualification petition but noted that he is prepared to continue the fight up to the Supreme Court if needed.