Petron, Caltex raise LPG prices by P1.25

As expected, Petron Corp. and Caltex Philippines Inc. raised yesterday the prices of their liquefied petroleum gas (LPG) products by P1.25 per kilo after other players, Totalfinaelf Philippines Inc. and Pilipinas Shell Petroleum Corp. increased prices last Monday.

Petron Corp. corporate communications manager Virginia Ruivivar said the latest increase in LPG prices will reflect the continuing rise in international contract prices amounting to P2.20 per kilo this month.

Caltex officials, on the other hand, said the move to raise LPG prices is a response to competitive local and international market conditions.

"The company is increasing its price due to continued pressure resulting from rising global prices and difficult market conditions," Caltex officials said.

The officials added that the October LPG contract prices have increased by 15 percent — roughly $40 per metric ton over last month. "This is even higher than the increase from August to September of about $30 per metric ton. Simply stated, costs are on a steep uptrend," they said.

Other factors in the domestic business environment — such as demand, competition and the marketplace and the weakening of the peso versus the dollar — add to the pricing pressure.

Caltex officials said they are committed to remaining open and transparent regarding price adjustments and will continue to stay attuned to market and competitive conditions.

"Caltex will more accurately reflect these conditions by adjusting prices up or down in smaller amounts, more frequently if necessary, with the frequency dictated by changes in market and competitive conditions. This will help cushion our customers from the impact of sudden big swings in prices," one of the officials said.

He said Caltex will continue to monitor market conditions closely and make adjustments to its prices accordingly, to ensure that Caltex continues to price its products and services independently and competitively.

This is the third time this year that the oil companies raised their prices. In August, they increased LPG prices by 80 centavos and again hiked these prices by P1 in September. Before this series of LPG price hikes, the last increase in the price of cooking gas was made in February 2001.

Shell external affairs manager Robert Kanapi said the LPG contract price is being driven up by oil pressures.

Kanapi said the increased winter season demand for LPG in Japan and China is another factor in the increase in LPG prices.