MANILA, Philippines - Oil industry giant Petron Corp. and Isla Gas have slashed the selling price of liquefied petroleum gas (LPG) for household use.
In a text message, Petron, which carries LPG brands Gasul and Fiesta Gas, confirmed cutting down the price of LPG for household use by P5.25 per kilogram effective May 1.
“This is equivalent to about P65 decrease for an 11-kilogram household cylinder,” Petron said.
The oil firm also decreased the price of Xtend auto LPG by P3.29 per liter.
“This is to reflect the drop in international contract prices for the month of May,” Petron explained.
On Monday, members of the LPG Marketers’ Association (LPGMA) rolled back prices of cooking gas by P5 per kilogram.
LPGMA lists Island Gas, Regasco Gas, Pinnacle Gas, Cat Gas, M-Gas, Omni Gas and Nation Gas as its members.
Data from LPGMA showed that contract prices are now hovering at less than $1,200 per metric ton (MT) from the record-high $1,330 per MT early in March.
Last month, oil firms implemented a rollback of P8.50 per kilogram for LPG prices, or a P105 reduction for every 11-kilogram tank of LPG.
Under the Downstream Oil Industry Deregulation Act of 1998, oil firms can price their products based on market forces so as to encourage competition.
The deregulation law also prohibits the government from intervening or influencing the pricing schemes of oil companies.
The government, through the Department of Energy (DOE) has monitoring powers. For monitoring purposes, the DOE has requested the oil firms to report to the department any price adjustments before implementation.