LPG prices ease in September on lower freight costs
MANILA, Philippines — Households will see lower cooking gas costs this month as lower freight costs offset higher global liquefied petroleum gas (LPG) prices.
The Department of Energy (DOE) said LPG prices will drop by P0.40 per kilogram or P4.40 for an 11-kilogram cylinder this month.
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In contrast, the rollback coincides with the international contract price of LPG rising to $649.50 per metric ton in September, up from $634 in August.
Meanwhile, higher crude oil prices, geopolitical tensions, and rising demand in Asia ahead of winter drove the rise in the international benchmark, according to the DOE.
Additionally, freight expenses dropped to $94.41 per metric ton this month from $120.82 per metric ton in August. The peso strengthened slightly, with the average exchange rate improving to P61.40 per dollar in August from P61.59 in July.
Likewise, these factors helped bring down the overall cost of LPG despite the higher international benchmark.
“For families who rely on LPG to prepare their meals every day, every peso saved can go toward other household needs. The reduction may be modest, but consumers should benefit whenever market conditions bring costs down,” Energy Secretary Sharon Garin said.
Moreover, the DOE estimated an 11-kilogram LPG cylinder would sell for P1,031 to P1,536 in September.
The price range reflects the country’s’ exposure to global LPG market changes, including contract prices (CP), freight costs, and exchange rates.
READ: Excise holiday for LPG, kerosene over – BIR
Still, Garin assured that the government will inform consumers about LPG price factors to aid understanding of household costs.
“Consumers should be able to understand what drives the prices they pay. We will continue to provide clear information on LPG price movements so households can make informed decisions and better manage their expenses,” she said.
The DOE urged consumers to compare LPG prices and buy cylinders from authorized dealers to ensure quality and safety. /pai
