Hefty LPG price hike looms

by Alvin Elchico, ABS-CBN News

Posted at Aug 28 2012 06:24 PM | Updated as of Aug 29 2012 04:15 PM

MANILA, Philippines - After the series of oil price hikes, consumers will again have to brace for more pain in their pockets.

The price of liquefied petroleum gas (LPG) is expected to increase significantly on September 1, as the international contract price continues to go up.

Since last week, LPG contract prices in the international market are higher by $160-$200/metric ton compared to August. This is equivalent to P8 to P9.50/kilo or P98 to P117/11kg tank (with 12% VAT).

But the Department of Energy clarified the final figure will only be available on September 1, as oil firms adjust LPG prices just once a month, usually the first week of the month.

When asked if the DOE will request for a staggered implementation of the expected hike, DOE director Zenaida Monsada said consumers may get angrier if there will be frequent, although smaller, price increases.

Liquigaz, one of the countries top LPG importers, confirmed the impending price increase for LPG.

Jun Golingay, Liquigaz vice president for sales, said it is even difficult to get ample supply in the international market because many companies worldwide are also scampering to get hold of LPG supply in anticipation of higher prices.

But Golingay assured that there is enough supply for all Filipino consumers.

Monsada said if consumers can, they should buy a reserve tank now to avoid the  hefty price spike.