Oil firms roll back LPG prices

With a drop of over $95 per metric ton (MT) in the contract price of liquefied petroleum gas (LPG) in the international market, oil companies have announced a rollback in LPG prices by P1 to P1.50 per kilogram effective today.

Petron Corp., Caltex Philippines Inc. and Total Philippines Inc. yesterday said they will cut LPG prices by P1 per kg or P11 for the 11-kg LPG cylinder. Pilipinas Shell Petroleum Corp., on the other hand, has implemented a higher LPG rollback of P1.50 per kg.

It will be recalled that Shell recently raised the prices of its LPG by 50 centavos per liter, while the three other oil firms maintained their prices.

Data from the Department of Energy (DOE) show that the international contract price for LPG dropped by $95.50 per MT to $530 per MT this month from $625.50 per MT last month and $582 in January.

Prior to the latest LPG rollback, the price of an 11-kg LPG tank was P500 to P552.

The government has been urging oil companies to look for ways to cushion the impact of rising LPG prices.

Energy Secretary Raphael Lotilla said the DOE is coordinating with the Department of Trade and Industry (DTI) and the Department of Science and Technology (DOST) to study the use of the "experimental coal briquette" as an alternative to LPG.

"We are trying to identify the commercial part of this particular coal briquette business so we can extend the use of this to serve as a substitute for LPG," he said.

Lotilla said the coal briquette technology was developed by one of the subsidiaries of the Philippine National Oil Co., the PNOC-Exploration Corp.

PNOC-EC first developed the technology during the time of former energy secretary Mario Tiaoqui.

The state-owned firm was mandated to develop coal as an indigenous energy source, mainly to preserve and protect the environment.

The coal briquette was originally designed to replace fuel wood and charcoal and to eliminate the need for cutting down trees.

But the energy chief said the state-owned power firm decided to lease its coal briquette business to a private entity.

Petron said it will start selling its LPG brand Gasul in eight government-accredited retail stores.

To be made available at the "Tindahan Natin" outlets are the standard household 11-kg Gasul cylinder, the 7-kg Gasulito and the 2.7-kg Gasulette. These products will be sold for a few pesos less than the prevailing retail prices. — Donnabelle Gatdula