Energy Secretary Jose Rene D. Almendras assured the public on Wednesday of adequate supply of cooking gas, belying reports of a shortage by some market players, including the Liquefied Petroleum Gas Marketers Association (LPGMA).
On the sidelines of the Security Bank Economic Forum on Wednesday, Almendras said that the perceived shortage was merely due to the “overdrawing” by the small players.
This, he said, would be investigated by a team from the Department of Energy.
“It’s not a problem of supply. It’s a problem of overdrawing. You have all your small refilling stations and small brands buying from one source, which is Liquigaz. On July 16, the inventory level was normal, but when we checked on Monday, the inventory was very low. When we asked them, they answered that it was because of a delayed shipment,” Almendras said.
“But the truth is, somebody announced that there would be a price increase next month. So naturally, everybody wanted to buy as much as they could. That’s what really happened. So I sent a team from the DOE to Liquigaz because I wanted a list of those who bought more than they would normally,” he said.
LPG supply from the big players was also stable, Almendras added.
LPGMA party list Representative Arnel Ty on Tuesday said there was a shortage, due to efforts by some suppliers to hold on to their inventory until prices are raised.
It was estimated that LPG prices would increase by P7 per kilogram in August, which is equivalent to a P77-hike per standard 11-kg tank.
Member companies of LPGMA, which currently account for an estimated 30 percent of the Luzon market, carry LPG brands such as Island Gas, Regasco Gas, Pinnacle Gas, Cat Gas, M-Gas, Omni Gas and Nation Gas.