Oil firms raise LPG price

MANILA, Philippines - Pilipinas Shell Petroleum and Petron Corp. raised the price of their liquefied petroleum gas (LPG) or cooking gas products by P1.45 per kilo.

Shell spokesman Roberto Kanapi said the recent price adjustment on LPG was carried out to reflect international contract prices on the local front.

It was expected that the two big LPG suppliers will implement another price hike after they raised their LPG products’ prices by only P2.25 per kilo while LPG Marketers Association made a one-time increase of P4 per kilo last week.

Meanwhile, Shell, Petron, Seaoil and Chevron Philippines will cut effective today the prices of their diesel, kerosene and premium gasoline by P1 per liter and 50 centavos per liter for regular gasoline.

Chevron will also reduce its prices of gold, silver and E10 products by P1 per liter.

PTT Philippines will also roll back pump prices by P1 per liter for diesel and all E10 gasoline. Likewise, a 50- centavo rollback on its gasoline prices will be implemented effective today.

Shell spokesman Roberto Kanapi said the oil price rollback is to reflect the decline in international product costs.

Kanapi also stressed that the actual retail prices of Shell’s pump products may vary across locations depending on market forces.

Phoenix Petroleum Philippines will implement a pump price rollback of P1/liter for gasoline and diesel effective 6:00 a.m. today to reflect the decrease in international oil prices and to equal the price movements of competitors in the local market.

Last week, Energy Secretary Angelo Reyes warned LPG players who are making premature price announcements which cause undue panic for consumers.

In an industry stakeholders’ meeting, Reyes said, “I enjoin everybody to desist from making premature announcements that will create panic in the market as what happened in the last week of August.”

Reyes also stressed that there was no supply shortage of LPG or cooking gas.

“There is no shortage in LPG supply. There was a surge in demand in the last week of August because of the premature announcement that prices would increase by P4.50 per kilo. The pronouncement resulted in a surge in buying or panic buying – so according to some of the people in the industry – business has been brisk – as a lot of customers were buying. Supply exceeded average levels of all major suppliers,” he said.

Early this year, LPG refillers, banking on an alleged hoarding of big LPG suppliers, raised their prices substantially which prompted the DOE to call all LPG stakeholders and conduct appropriate investigation on the allegation. The DOE probe though revealed that there was sufficient supply of LPG and the apparent shortage was brought about by the unusual surge in demand.

The energy chief said instead of making premature statements, the LPG refillers should be wary about under-refilling and substandard LPG cylinders. – DONNABELLE GATDULA