Philippine Daily Inquirer
6:24 pm | Friday, January 31st, 2014
INQUIRER file photo
MANILA, Philippines–Mixed expectations on liquefied petroleum gas (LPG) prices for February were put to rest as sellers cut prices for the second-straight month amid soft market demand and government signals clamping down volatility.
In separate advisories, oil firms said they will roll back LPG prices by 12:01 a.m. Feb. 1 on low international price trends.
Petron said it will trim Gasul and Fiesta Gas prices by P1.45 per kilogram, and Xtend AutoLPG by P0.81 per liter.
Isla LPG Corp. said it will roll back prices for Solane by P1.68/kg.
The Eastern Petroleum Group also said it will roll back EC Gas household LPG prices by P1.45 per kilogram, and AutoLPG by P0.81 per liter.
Other LPG players are expected to impose similar adjustments as the Philippines, a fuel importer, is highly vulnerable to international price trends.
Isla LPG CEO Toshihisa Fuse assured customers of enough supply for Solane branded LPG products. “We work very closely with our LPG suppliers to ensure the steady supply of both our local and imported LPG products. We remain committed in providing customers with safe, reliable, and high quality Solane LPG,” Fuse said in a separate statement.
Most industry sources had predicted a second monthly price rollback for LPG since the start of the year as contract prices worlwide trended downward. However, this week, there were concerns of a price hike driven by challenges in logistics for certain refillers in southern Luzon. LPG Marketers Association Rep. Arnel Ty recently said the closure of Shell’s LPG-producing refinery in Batangas last year left some refillers sourcing the cooking fuel from another supplier—Liquigaz–in Bataan and bearing additional transport cost as a result.
The Department of Energy (DOE) maintained it expects stable LPG supply despite industry changes, including the shutdown of some underutilized LPG terminals in Luzon and the race among independent players to build direct import facilities in the Visayas and Mindanao.
Amid reports of price speculation, Energy Secretary Carlos Jericho Petilla also issued a department circular requiring all LPG importers, suppliers, refiners, refillers, marketers, distributors, haulers/transporters, handlers, storage providers, retailers, sellers and dealers of LPG products to secure a Standard Compliance Certificate (SCC) to be able to transact and sell with other LPG industry players and consumers.
“This circular will serve as a safeguard for LPG customers as it will discourage those who are illegally selling LPG without proper clearances. The SCC also encourages refillers to contract a portion of their requirements to secure their supply and avoid supply uncertainty,” DOE said.
Violators of the said circular will be sanctioned with administrative charges and fines by the DOE. All existing LPG establishments have three months from the effectivity of the circular to fully comply with the rules, DOE said.
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Tags: Business , LPG , oil prices , price rollback
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