MANILA, Philippines - Dealers raised yesterday the price of liquefied petroleum gas (LPG) by P4 per kilo or P44 per 11-kilogram tank, citing an increase in contract prices in the international market.
The Liquefied Petroleum Gas Marketers Association (LPGMA), the largest group of LPG dealers, announced that they had to jack up LPG prices because of developments in the world market.
The LPGMA clarified that the latest increase is not related to a reported shortage.
“Contract price increased by $77 per metric ton (for September), and the P4 is the only increase for the month,” LPGMA president Arnel Ty said.
In August, LPG was sold at $511 per metric ton in the world market. Before the price hike, an 11-kilo tank of LPG cost P497 to P575 per cylinder.
The increase in LPG prices followed the P1 per liter price hike for gasoline, diesel and kerosene over the weekend.
Energy Secretary Angelo Reyes will meet with LPG stakeholders today to discuss reports of an alleged shortage of LPG products last week.
LPGMA members include Omni Gas, Pinnacle Gas, Island Gas, Cat Gas, Nation Gas, and Liquigaz.
In the last part of 2008 and early this year, LPG supply in the local market became tight due to alleged logistic problems of major LPG suppliers.
A few days ago, the Department of Energy filed administrative and criminal charges against 21 LPG companies for various trade violations.
Reyes said the filing of charges was in connection with his department’s drive to protect consumers against under-filling of cylinders and other violations.
Companies now undergoing preliminary investigation at the Department of Justice are Jetti Petroleum Inc. and Dura Flame.
Cases submitted for resolution at the DOJ include those of Marife Baga-an Rollorata, Gaz Plant Inc.; Marlon Jiao Pasamba of MJP; Reynaldo Canales and Danilo Andrino of Liberty Gaz; Reynaldo Canales and Robert Dela Rama Pepito of Liberty Gas; X5 Marketing and LPG Refilling Station / K CEM LPG / Ruseth General Merchandise; Demazenod Trading; WR Gas; Tony del Rosario of Dura Flame Gas; RFRAN Gas Marketing; Angel Gas; Vony Gacho Diaz; Oil Link International Corp.; Belltics LPG Dealers; Hermit Gas Corp.; CM Noriega Gas Corp.; Savers Gas Corp.; Northern Gas Corp.; Cat Gas Corp./ Capitol Trading and Transport.
The court ordered Crest Gas Inc., Telstar Marketing and New Pinn Ann Gas Corp. to pay administrative fines.