Shell cuts price of LPG by 50¢

Pilipinas Shell Petroleum Corp. and Petron Corp. yesterday initiated another 50-centavo reduction in the price of their liquefied petroleum gas (LPG) or cooking gas, a move predicted by the Department of Energy (DOE).

Energy Secretary Raphael Lotilla earlier said that based on DOE monitoring, LPG’s international contract price for July has dropped by $17.00 per metric ton, from $606.00 in June to $589.00 per metric ton this month.

Based on the DOE’s data, the lowering of international contract prices of LPG would translate to 75 centavos per kilo reduction on domestic LPG prices.

But the latest LPG price cut went beyond what was expected.

Just last week, the oil companies already reduced their prices by 50 centavos, bringing the total reduction this month to P1 per kilo.

DOE oil industry management bureau director Zenaida Monsada said while they expect further cuts on LPG prices, domestic pump prices would remain volatile in the coming days.

“We do not look forward to any reduction in fuel prices. But we hope it (fuel prices) would remain stable. We hope the appreciation of the peso would continue to help soften the impact on the rising international crude prices,” she said.

Lotilla, at the same time, reiterated the government’s call to the public to purchase their LPG only from authorized dealers and retail outlets in view of unsafe and unfair trade practices prevailing in the LPG industry.

He said illegal LPGs are those that are refilled without conforming to safety standards.

“Prices of crude and other petroleum products including LPG in the international market are very volatile, and it is only right that consumers get their money’s worth in buying these products, most especially LPG,” he said.

Lotilla has also called on the LPG Industry Association, Inc., Confederation of LPG Refillers, LPG Refillers Association and the LPG Marketers Association to ensure that their respective members are not engaged in any malpractice such as underfilling, use of substandard LPG tanks and tampering of cylinders.