No LPG hoarding - DOE

Energy Secretary Angelo Reyes dismissed allegations of hoarding against four major liquefied petroleum gas (LPG) suppliers – Petron Corp., Pilipinas Shell Petroleum Corp., Total Philippines Inc. and Liquigaz Corp.

Reyes announced there was “no hoarding” of cooking gas after an inspection of LPG facilities of the four firms. 

“There is enough LPG supply,” the energy chief said, noting that the next inspection would focus on retailers.

He said he has ordered the Presidential Task Force on the Security of Energy Facilities and Enforcement of Energy Laws and Standards to check on refillers and distributors.

“We will also look at the downstream LPG industry, specifically the refillers and distributors,” he said.

The sharp drop in LPG prices has boosted demand for the cooking gas. Shrinking contract prices of LPG in the world market have pulled down local retail costs of the fuel product.

LPG Marketers Association president Arnel Ty warned in December 2008 of possible supply shortage due to the sudden surge in demand as well as hoarding by big suppliers.

LPGMA’s members include Omni Gas, Pinnacle Gas, Island Gas, Cat Gas and Nation Gas.

The LPGMA official claimed that from the normal 80 trucks a day, the big LPG suppliers only load 50 trucks, which may have been causing the lack of supply in most areas in Metro Manila.