Petron cuts LPG price by 55¢

Major oil player Petron Corp. announced yesterday a rollback of 55 centavos per kilo in the price of liquefied petroleum gas (LPG) following a drop in the contract price of the product in the world market.

The adjustment translates to a P6.05 reduction in the price of an 11-kilogram cylinder of Gasul, Petron’s LPG product, effective today.

From P255-P265, the retail price will now be in the range of P249-P259 per 11-kg cylinder.

Petron communications manager Virginia Ruivivar said the rollback was made possible by the continuous drop in the LPG contract price from $250 per metric ton in July to around $230 this August.

However, the contract price affects only part of Petron’s LPG volumes since only half is imported directly, while the other half is produced from crude oil processed at its refinery.

The rollback announcement was made after Petron posted a favorable earning performance of P513 million for the first half of the year.

Rivals Pilipinas Shell Petroleum Corp. and Caltex Phils. Inc., which reported half-year incomes of P790 million and P100 million, respectively, said they would also adjust LPG prices.

The Big 3 companies rolled back gasoline prices by 20 centavos last July 19.

Petron had also initiated a P1.50 rollback in LPG prices last April 4, prompting the two other firms to reduce their prices as well.

At present, the three companies still corner a majority of LPG sales. However, the new industry players said they intend to capture at least 35 percent of the market this year to improve last year’s share of 20 percent.

Other players in the LPG sector are Total Gaz, Pryce Gaz, Liquigaz, Manila Gas, Petronas and Mobil Gas.