DOE to do inventory of LPG supply

CEBU, Philippines - The Department of Energy (DOE) 7 has not received any official report on the reported lack of supply of the liquefied petroluem gas (LPG) here in Cebu even as an official of the LPG Marketer’s Association (LPGMA) already confirmed that supply is “tight.”

The House of Representatives will investigate the “unusually tight” supply of LPG, according to LPGMA partylist Rep. Arnel Ty.

In a statement, Ty said he has received complaints from several LPG distributors and refillers who are having difficulty in securing supply from bulk providers.

“This tightness in supply seems strange, considering that all is supposed to be well in the LPG markets here and abroad,” he said.

DOE-7 regional director Antonio Labios said that based on his latest inquiry at their head office, the report on the lack of LPG supply has yet to be confirmed. Labios said that DOE-Manila is now trying to get an inventory of LPG supply from bulk supplier to determine the true situation.

But Ty said he already asked the House committees on trade and industry, and energy, as well as the DOE to conduct a probe on the matter.

“We sure hope major suppliers are not purposely holding back deliveries in anticipation of higher prices... We want this abnormality nipped in the bud, before it starts to affect ordinary consumers,” he said.

Local LPG prices have been falling since April, but prices could start to increase again in August as the international contract price of cooking gas and auto fuel rebounded.

Refineries and importers are supposed to maintain at all times at least seven days of ready-to-market inventory, plus another 30 days worth of deliveries in transit, to ensure a stable supply in the market.

 DOE Director Zenaida Monzada in an earlier interview with ABS-CBN News’ TV Patrol admitted that supply is tight because the vessels carrying the imported LPG are having a hard time travelling in the Pacific due to bad weather conditions.

Monzada, however, said that there are still enough supply for the more popular brands of LPG.

Prices of LPG were reduced by P50 per 11-kilogram for the past four months but with the increase in the international contract price of cooking gas and auto fuel, by August 1, LPG tanks are expected to increase by P77 per 11-kilogram cylinder tank or P7.00 per kilo.

— (FREEMAN)