Petron Corp. announced it will implement a P2.55 per kilo rollback (VAT-inclusive) in its prices of liquefied petroleum gas (LPG) or cooking gas effective January 1.
This is equivalent to P28.05 per 11-kilo tank used primarily by households.
“AutoLPG prices will likewise rollback by P1.43/li at the same time.
These reflect the international contract price of LPG for the month of January,” Petron said in its advisory.
Other oil firms are expected to follow.
LPG contract price (CP), commonly called the “Saudi CP,” is the primary driver of LPG pricing in the Far East, including the Philippines.
It is the international price benchmark set at the beginning of each month by Saudi Arabia’s state-owned oil company Saudi Aramco.
Like all other petroleum products, the Department of Energy said the Philippines has no influence over the LPG CP, as the country’s domestic requirement is small versus the world demand.
For the month of December, LPG contract price decreased to US$763.50 per metric ton (MT) from US$842/MT in November.
The oil companies decreased the price of LPG effective December 1 by P4.37 to P4.75 per kilo or about P48.07 to P52.25 per 11-kg cylinder.
Auto LPG likewise decreased by P2.65 per liter to P2.66 per liter.
As of December 1, household LPG prices in Metro Manila are estimated to range from P835.93 to P1,032.75 per 11-kilogram cylinder.