Caltex, two others raise LPG prices

Caltex Philippines Inc. and new players Liquigaz and Pryce Gas Inc. have increased the prices of their liquefied petroleum gas (LPG) for the bulk market by P1 per kilogram (kg).

Caltex increased its LPG price by P1 effective midnight of March 7. Liquigaz jacked up its price by P0.90 per kg while Pryce Gas followed Caltex with a P1 price adjustment.

However, Caltex president Enrico C. Cavestany said they have not authorized any increase in their retail price.

With the P1 increase, Pryce Gas bulk LPG prices will be between P230 and P231 per cylinder. Liquigaz officials were unavailable as of presstime.

Meanwhile, Petron Corp. and Pilipinas Shell Petroleum Corp. denied reports that they increased their LPG prices yesterday.

"We have not increased the prices of any petroleum product, much less LPG. We have no plans for any increases as of this time," was the flat denial of Petron chairman and chief executive officer Jose Syjuco Jr.

Pilipinas Shell vice president Rey Gamboa also flatly denied that they increased prices by P0.40 per kg for both bulk or retail prices. "We have no plans as of the moment."

Petron, Pilipinas Shell and Caltex jointly control nearly 86 percent of the LPG market while Liquigaz claims to be the leader among the new players with nearly 10-percent share overall. The new players account for the remaining 14 percent.

Pryce Gas controls nearly one fourth of the LPG market in southern Philippines worth approximately $250,000 yearly. The other market players in that area are Shell Gas, Petronas Corp. and Liquigaz Corp.

The last time prices of LPG were increased was in September 1999 by an average P16 per 11-kg cylinders.

The total LPG market is believed to have a volume of one million metric tons, with three-fourths located in the Luzon market and the remaining one-fourth accounted for the Visayas and Mindanao. The national growth rate for the LPG market is nine percent per annum while Mindanao's growth rate for the LPG market is 15 percent.