Consumers complain about LPG shortage

With the continuous drop in liquefied petroleum gas (LPG) prices, consumers are complaining about a shortage in the supply of cooking gas during the holiday season.

But Energy Secretary Angelo Reyes said there was no truth to this and dismissed these reports as simply rumors.

“The supply is sufficient and there should be no shortage in LPG these holidays as indicated by the biggest LPG suppliers,” Reyes said.

In a memorandum, Department of Energy (DOE) director Zenaida Monsada said three large importers of LPG – Liquigaz Philippines, Petron Corp., and Pilipinas Shell Petroleum Corp. – have assured the public of steady and ample supply of cooking gas this month.

Reyes warned that he would conduct a probe on people spreading rumors about a shortage of LPG, saying they are causing undue panic to consumers.

“I will look into this. I will have them investigated. People who are creating these rumors will be probed,” he said.

Monsada said Liquigaz’s Jun Golingay noted that it has a total of 17,324 metric tons (MT) of LPG arrivals for December.

The Liquigaz official, Monsada said, has also assured her of maintaining their LPG prices this month.

As for Petron, Monsada said the country’s largest LPG supplier has also informed the DOE that it will have no problem meeting the demand this month.

“We have no reported run-outs of LPG,” Petron public affairs general manager Virginia Ruivivar told the DOE.

Petron, Ruivivar said, will have volume imports of LPG of 20,900 MT for the month of December.

Shell, in a statement, has assured its customers that it has adequate and continued supply of LPG amid reports of shortages in supply during the holidays.

“Even when demand for LPG is expected to increase, especially during the holiday season, our customers can be assured of continued supply,” said Bernard Ong, general manager for Shell LPG.

Shell is the only company in the Philippines with both a refinery and Southeast Asia’s largest LPG import terminal. 

Ong said these two supply points guarantee steady and reliable supply of LPG.

Shell is the pioneer marketer of LPG in the world with over 50 years of experience. 

In the Philippines, the Shellane brand has been trusted for over 35 years, and has been providing innovative solutions to the energy needs of its different markets.

Monsada said they are now looking into the alleged increase in volume demand of small LPG retailers.

Arnel Ty of the LPG Marketers Association earlier informed the DOE that the LPG refillers have an increase in off-take of LPG of about 30 percent this month, which may cause a shortage.

But Reyes warned retailers against hoarding. “We will have you investigated. These alleged hoardings will not be tolerated and will be slapped with appropriate sanctions,” he said.

According to Reyes, they are also looking at the reported logistical problems between importers and suppliers.

“There were reports that there were long queues of trucks that were delivering the LPG. We will look into this,” he said.

As of Dec. 17, LPG prices ranged from P375 to P430 per 11-kilo cylinder.