MANILA, Philippines – The low cost of cooking fuel should lead to lower prices of other basic goods, including the breakfast staple pan de sal and other bread products, the party-list group Liquefied Petroleum Gas Marketers’ Association (LPGMA) said yesterday.
The struggle for market share among LPG players has intensified as global oil prices are on the downtrend.
“We are pleased to report to consumers that as a result of highly aggressive free market competition, local cooking gas prices are now starting to reflect the fair cost of LPG in the international market,” LPGMA party-list Rep. Arnel Ty said.
The lawmaker made the statement shortly after Petron Corp. declared a P3.40-per-kilo rollback in LPG prices effective today. The cut is equal to a P37.40 reduction in the price of the company’s 11-kilogram tank.
Eastern Petroleum Corp. also announced it would slash LPG prices by P3.36 per kilogram, or by P36.96 per tank, effective today, while Isla Gas Corp. said it would lower prices by P37 per cylinder.
“The biggest winner here are consumers, who are enjoying the benefits of fair and reasonable prices as a direct consequence of robust competition,” Ty said.
“We now have a greater number of LPG importers and suppliers in the market. They have helped diminish the pricing power of the bigger players, who are now continuously adjusting their prices lower and closer to those of their many smaller rivals,” he explained.
Under the Revised Price Law, or Republic Act 10623, LPG is classified as a “basic necessity.”