LPG suppliers say stocks adequate but prices set to rise P330 per tank

STOCKS of liquefied petroleum gas (LPG) are adequate, but suppliers said prices are set to jump by at least P330 for an 11-kilogram (kg) tank.

“No shortage but the price increase will be the highest in history,” Arnel U. Ty, founder of LPG Marketers Association, Inc. and president and chief executive officer of Republic Gas Corp. (Regasco), said via Viber.

Mr. Ty said that LPG costs are set to increase by P20 per kg starting March 28 followed by an additional P10 hike by April 1.

The price hike is driven by higher shipping and contract price costs, Mr. Ty said.

With the increase, the prevailing price of an 11-kg LPG tank in Metro Manila could approach P1,500.

Citing a recent survey, Mr. Ty said the Philippines consumes around 150,000 metric tons of LPG per month. About 50% of households use LPG, while the remainder use kerosene, charcoal, or wood.

Mr. Ty said the industry maintains about 30-40 days worth of inventory.

Pryce Gases, Inc., one of country’s largest retail distributors of LPG, added that it considers supplies to be ample for now.

“We have stocks that will last up to the end of April,” the company said in a statement to BusinessWorld.

Solane LPG said only that operations are steady, with the company in a position to serve customer needs.

“We continue to actively secure and diversify our supply sources to help ensure sustained availability of our product,” the company said in an advisory. “At the same time, we are closely coordinating with the Department of Energy (DoE).”

The DoE has described the supply of petroleum products as sufficient, including gasoline and diesel, though it estimated the LPG supply as good for 23.51 days.

Energy Secretary Sharon S. Garin earlier told a Senate hearing that they have been asking restaurants to lower their LPG consumption “for a bit until we get the supply coming in.” — Sheldeen Joy Talavera