LPG marketers warn of impending huge price hike
Consumers should brace for an increase in the price of cooking gas of around P5 per kilogram next month, or roughly P55 per 11-kg cylinder, amid an impending shortage in supply, according to LPG Marketers Association party-list Rep. Arnel Ty. AFP FILE PHOTO
MANILA, Philippines—Consumers should brace for an increase in the price of cooking gas of around P5 per kilogram next month, or roughly P55 per 11-kg cylinder, amid an impending shortage in supply.
The supply shortfall, projected to reach a “conservative” 17-million kg, is attributed to the permanent decommissioning of Pilipinas Shell’s import terminal for liquefied petroleum gas (LPG) in Batangas, and the 26-day maintenance shutdown of the company’s refinery, said LPG Marketers Association party-list Rep. Arnel Ty.
In a phone interview on Tuesday, Ty explained that the 17-million kg constituted around 15 percent of the country’s total cooking gas demand, estimated at around 110 kg a month.
The lawmaker warned the shortage may be bigger and may last longer, up to two years, as relayed to him by Shell, unless the government acts on the issue immediately.
“By March, we can expect more than a P5 per kg increase and there will be a shortage. I already told Energy Secretary Jericho Petilla that he has to act now, he has to act fast. Otherwise there will be a shortage for the next two years,” Ty said.
“I have sent my proposals but the secretary told me that until such time as the problem arises, he will not be able to act given the deregulated nature of the industry. One of my proposals is for the government to urge Shell to operate the import terminal in the meantime. Or Petilla could exert police powers to temporarily take over the facility,” Ty said.—Amy R. Remo
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