LPG price cut by P1/k

MANILA, Philippines - Another P1 per kilogram rollback on liquefied petroleum gas (LPG) or cooking gas will take effect today, according to LPG Marketers Association president Arnel Ty.

Ty said they have reduced their prices to “ force the oil majors to reduce their price.”

The top three LPG suppliers are Petron, Shell and Total.

Earlier, Shell increased its LPG price by 45 centavos per kilo at the time that LPG Marketers Association decided to cut prices by P1 per kilo to show how “competitive forces” work in the industry.

Before the latest LPG price rollback, an 11-kilogram LPG cylinder sold at P610.

Ty last week already sounded off the possible price reduction in LPG prices, noting that there was an anticipated lowering of international contract prices for February.

LPG Marketers Association members include Omni Gas, Pinnacle Gas, Island Gas, Cat Gas and Nation Gas.

The LPGMA members have been in disagreement with the top LPG suppliers, sometimes accusing the latter of controlling the bulk releases of LPG from their terminal in Batangas, which has apparently led to shortage of supply in the market.

LPGMA raised LPG prices by P3.50 per kilo in December as the contract price for LPG in the world market soared to $727 per metric ton from $660 per mt in November.