Petron cuts LPG price

MANILA, Philippines - Petron Corp., the country’s biggest oil refiner, announced a price rollback for liquefied petroleum gas (LPG) effective midnight last night.

Petron implemented price rollbacks of P1.45 per kilogram for Gasul and Fiesta Gas and P0.81 per liter for Xtend Auto LPG.

Other LPG players are expected to follow suit, although no other company has made a similar announcement as of press time.

According to the Department of Energy (DOE)’s latest price monitoring report, LPG prices are currently at P766 to P833 per 11-kilogram tank. With the rollback, prices would go down to P764.55 to P831.55 per 11-kilogram tank.

The downward price adjustment came after the DOE said last Thursday that LPG players were expected to implement a rollback next week if the international price of cooking gas was lower for February compared to January.

The DOE also tightened the rules for the LPG industry through the issuance of Department Circular 2014-01-0001requiring LPG players to secure a Standard Compliance Certificate (SCC).

Under the circular, all importers, suppliers, refiners, refillers, marketers, distributors, haulers, transporters, handlers, storers, retailers, sellers and dealers of LPG must have an SCC to be able to transact with other LPG players and sell cooking gas to consumers.

The DOE said the circular would safeguard customers as it would discourage those who are illegally selling LPG without proper clearances.

As this developed, the DOE assured that LPG supply in the country is sufficient, including in Southern Luzon, despite the closure of Shell’s LPG import facility in Batangas last year.

“There is sufficient supply of LPG in the entire country despite some companies’ divestment in the LPG industry, which, as we understand, are business decisions,” Energy Secretary Carlos Jericho Petilla said.

LPG player Solane has already contracted its requirements with Liquigaz in Bataan to fill the supply gap due to the Shell facility’s closure.