LPG prices rise due to tight supply; gasoline, diesel price hikes seen

INQUIRER file photo

MANILA, Philippines — Retail prices of liquefied petroleum gas (LPG) grew to as much as P14.30 per kilogram starting on Monday, amid long lines at distribution hubs in Batangas. Tight supply would also lead to price hikes for gasoline and diesel.

Petron said in an advisory that it increased its Gasul prices by P14.30 per kilogram from 12:01 a.m. on Monday, except in the provinces of Aklan, Bohol, Leyte and Samar. The prices in these areas are increasing in two tranches: P8 per kilogram starting Monday  and P6.30 per kg. on Dec. 15.

Petron said it would increase the price for autoLPG by P7.99 per liter.

Total, for its part, said it increased LPG prices by P13 per kg. at 6 a.m. on Monday.

Isla LPG said that buyers of the Solane LPG brand were dealt a P9.90-per-kg. increase at 6 a.m. on Monday.

The LPG price hike was due to tight global supply combined with high demand for heating fuel in Europe and North Asia going into the winter season, the Department of Energy (DOE) said.

“It’s the highest increase but not the highest price. The highest retail price was in March 2012 and that was due to an extended winter,” said Secretary Carlos Jericho Petilla.

The record price (in March 2012) was close to P1,000 for an 11-kg. cylinder.

For this month, the price is around P900 per 11-kg. cylinder from the previous range of P680 to P760 per 11-kg. cylinder tank.

Diesel prices, meanwhile, will increase by more than P1 per liter this week, according to industry sources. Gasoline products would likely increase by P0.30 to P0.50 per liter, sources said.