MikeLigalig.com

By Donnabelle Gatdula
The Philstar

The country’s major oil players have increased the price of liquefied petroleum gas or cooking gas by P1.50 per kilo due to the significant rise in LPG contract prices in the international market.

Petron Corp., Pilipinas Shell Petroleum Corp. and Total Philippines Inc. said they have to increase prices to offset the hike in international contract prices.

LPG contract price for the month of November rose by $90 per metric ton to $742.50 per MT as against October’s $652.50 per MT.

At the same time, Total said it would increase the price of its auto LPG by P2.30 per liter.

Petron said the $90 per MT increase is equivalent to a P4 per kilo increase in local prices.

The amount of LPG price hike was relatively smaller than what the LPG Marketers Association announced the other day.

It was reported that LPGMA had raised their prices by P5 per kilo.

It is the practice of oil companies, except members of the LPGMA, to adjust prices on a staggered basis to cushion the impact on consumers.

Industry observers said the Department of Energy (DOE) should look at the increase implemented by the LPGMA as this was significantly higher than the other oil firms’ price adjustment.

It can be recalled that the DOE, on several occasions, had already asked the LPGMA to explain why it carried out a much higher price adjustment.

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