Mikey urged to initiate probe on LPG shortage

A militant lawmaker representing farmers called on presidential son and House energy committee chair Pampanga Rep. Juan Miguel Arroyo yesterday to begin an investigation into the reported shortage of liquefied petroleum gas (LPG).

As this developed, the Department of Energy said it expects LPG supply to normalize this week and prices to go up by as much as P3 per kilogram next month.

At Malacañang, deputy spokesperson Lorelei Fajardo said there is no shortage of LPG and warned hoarders of a “stiff penalty.”

Anakpawis Rep. Rafael Mariano said the government must swiftly address the reported LPG shortage, a problem that has been bedeviling many Filipino households since December.

The party-list representative also wants a congressional inquiry into the P2 per kilogram increase in the prices of LPG last week, despite warnings from Energy Secretary Angelo Reyes that “no price increase is due at least until next month.”

Reyes relayed the warning to LPG Marketers Association president Arnel Ty.

Retailers and refillers have said there is a shortage but the DOE as well as dealers have blamed the delay in deliveries on the surge in demand last December.

Mariano said the DOE should spearhead a deeper investigation to determine who among the dealers or retailers are involved in hoarding of LPG or if the conflict in Gaza has really affected supply.

He also stressed the need for greater regulation of LPG products as well as the setting of price caps to prevent unscrupulous businessmen from creating artificial demand by hoarding LPG products.

The Department of Trade and Industry, he said, should also help safeguard consumer rights.

Mariano suggested the use of alternatives to LPG like charcoal to minimize the effect of the shortage on day to day living. 

Supply seen to normalize

Major LPG suppliers, in a meeting with Energy secretary Angelo Reyes, confirmed that LPG supply would stabilize in the coming weeks.

“As we have agreed here today in our meeting with Secretary Reyes, we will, effective today, saturate the market with LPG,” Petron Corp. vice president for sales and marketing Jose Campos said.

“We will fully support the requirements of our regular customers – retail trade, industrial consumers and auto LPG users,” he said.

“We feel that over the next few days, all unserved demand will already be taken care of.”

Pilipinas Shell Petroleum Corp. LPG general manager Bernard Ong also promised adequate LPG supply despite a refinery shutdown next month.

“In particular for Shell, we have a planned refinery maintenance next month and we are importing quite a substantial amount of LPG to make sure there’s no disruption of that account,” Ong said.

Total Philippines corporate affairs chief Malou Espina also said they expect more LPG supply this week.

“We also expect a supply to arrive by Jan. 25 and customers can be assured that they will be serviced. Overall within the month, we assure you that we will be able to service all of the requirements of our customers,” Espina said.

Congress urged to step in

Meanwhile, Consumer and Oil Price Watch Chairman Raul T. Concepcion said his group wants to discuss with Congress ways of addressing the reported lack of transparency in pricing as well as LPG shortage.

He said COPW would also be coming out with a paid advertisement to catch the attention of lawmakers.

“Congress may want to step in and look at this matter before it gets worse,” he said.

“We are again requesting the DOE to immediately release to the public, in the interest of transparency, the long overdue inventory of the oil companies to include volume and existing stocks on hand plus the incoming shipments as of Jan. 16,” Concepcion added.

He also took note of the pronouncement of Shell country chairman Edgar Chua that the firm would “move toward greater transparency by reflecting movements of product prices and foreign exchange once or twice a week in 2009, and not moderated, whether upward or downward.”

The COPW chief also welcomed the DOE’s and DTI’s initiative to look into LPG problem to protect the interest of consumers.

“Adequate supply of LPG is a basic consumer concern especially among our CDE economic classes. The DTI, by authority of RA 7394 or the Consumer Act must step in to determine whether there is in fact a shortage of LPG and why,” Concepcion said.

In the interest of transparency, COPW said LPG suppliers should make public disclosures of their capacities or outputs.   

“The government agencies concerned must act decisively to dispel fears of supply, and heaven forbid, price manipulations,” he said.   – With Marvin Sy