Big 3, Total cut LPG prices by 50 centavos

The country’s major oil companies gave in to competitive pressure and rolled back prices of their liquefied petroleum gas (LPG) products by 50 centavos per kilo.

Petron Corp., Pilipinas Shell Petroleum Corp., Caltex Philippines Inc. and Total Philippines Inc. said their move to cut LPG prices was mainly due to competitive market forces.

The other day, small oil players led by Liquigaz implemented a price rollback, prompting the big oil companies to follow.

Liquigaz is one of the small oil players that has been very aggressive in the LPG industry. By 2004, Liquigaz had cornered a substantial portion of the LPG market at 21.1 percent.

Aside from Liquigaz, the other small oil firms that are slowly making an impact in the LPG market are Total, Pryce Gas and Nation Gas. About 20 percent of the LPG needs of Mindanao are being supplied by Pryce Gas.

Of the country’s total LPG consumption of 130,000 tons per month, about 35,000 to 40,000 tons are supplied by the small oil players.

Petron and Shell, meanwhile, are still the market leaders in the LPG industry with more than a 30-percent share each.

The Oil Deregulation Law of 1998 gives oil companies a free hand to price their products based on prevailing market conditions.

The recent LPG price reduction is the third in recent months and features a total price cut of P2 per kilo.

With the price rollback, the suggested retail price for an 11-kilo LPG cylinder now ranges from P494 to P520. — Donnabelle Gatdula