Independent dealers may cut LPG prices anew next week

ABS-CBN News

Posted at Feb 21 2009 01:32 PM | Updated as of Feb 21 2009 09:32 PM

Independent dealers announced Saturday another possible price cut in liquefied petroleum gas (LPG) products next week.

Arnel Ty, president of the LPG Marketers' Association (LPGMA), said independent dealers may lower the prices of 11-kilogram LPG cylinders next week.

Ty said dealers may also slash the prices autogas products by March, depending on the movement of the LPG contract price in the world market.

"The 33 peso rollback will be followed by another price cut. We will know if there will be an autogas price adjustment after February 28," Ty told radio dzMM.

The LPGMA has slashed the prices of Pinnacle Gas, Cat Gas, Omni Gas, Nation Gas and Island Gas by P33 per 11-kilogram tank.

Ty said the latest LPG price reduction was a result of lower LPG contract price in the world market. He added that the price cut was in response to the calls of the Department of Trade and Industry.

He added that they lowered the prices of LPG because of its overflowing supply, which may last until March.

"DTI Undersecretary [Zenaida] Maglaya said that to lower the price [of LPG] is by putting more supply in the market and satisfy the demand. It's happening right now. Supply is greater than the demand," Ty said.

The LPGMA president, meanwhile, predicted that big players, including Shell and Petron might be forced to reduce their LPG products because of the independent dealers' move.

Ty's group and big oil players had given conflicting statements at a congressional probe on the alleged shortage of LPG supply in the country.

The LPGMA said prices of cooking gas increased in the last couple of months because of the supply shortage. The theory, however, was contradicted by big oil players.