MANILA, Philippines -- The price of cooking gas may rise by P3.50 a kilogram on Tuesday next week due to the expected increase in the international contract price of liquefied petroleum gas next month.

This will raise the price of an 11-kg LPG cylinder, which is used by most households, by almost P40, according to the LPG Marketers Association (LPGMA). LPG cylinders, which used to sell for around P580 each will sell for at least P620.

In a phone interview, LPGMA president Arnel Ty explained that the latest price hike was due to an estimated $70-per-metric-ton (MT) increase in the international contract price. He added that as of this month, the contract price stood at $650 per MT and has been expected to rise to $720 per MT by December.

Despite the anticipation for a bigger demand for LPG during the upcoming holidays, Ty assured the public that this would be the only increase they would implement next month.

This price hike is also the first to be implemented by LPGMA member companies, following the freezing of the prices of all petroleum products at their Oct. 15 levels, by virtue of Executive Order No. 839. The President has lifted EO 839 after petroleum companies and distributors suffered huge losses that hampered their importation of finished gas products.

At the time EO 839 was in effect, LPGMA member companies were selling LPG for about P580 per cylinder. By next month, when the price hike takes effect, this will increase to at least P620.

As of Nov. 18, data from the Department of Energy showed that LPG was selling for P568 to P637 per cylinder.

LPGMA member companies, which supply LPG products to an estimated 30 percent of the Luzon market, carry brands such as Island Gas, Regasco Gas, Pinnacle Gas, Cat Gas, M-Gas, Omni Gas and Nation Gas.