LPG Price Monitor as of 02 July 2019

LPG Contract Price (CP)

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 an international price benchmark set at the beginning of each month by Saudi Arabia’s state - owned oil company Saudi Aramco.

Aramco's CPs, which set the price of LPG lifted from the Saudi ports of Yanbu, Ras Tanura and Ju'aymah under term supply contracts, are closely watched by the market as they tend to set a base level for LPG pricing for most markets East of Suez.

The DOE refer to the LPG/Saudi CP and forex monthly average changes in determining/monitoring the price adjustments of LPG in the domestic market. Following the timing of the monthly changes in CP, domestic price of LPG also vary every first day of the month and remain constant throughout the whole month.

Like all other petroleum products, 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 July, LPG Contract Price has decreased by US$58.50/MT to US$ 361 .50/MT, from US$ 419.50/MT last month.

International LPG Market Development Positions

  • he July propane and butane CPs are within traders' expectations.  
  • The propane CP has fallen for the second straight session after rising from January to May.
  • The July Butane CP continued to slide since April CP.
  • July CPs were lower due to a slide in Brent crude prices around end-June  versus levels seen around end-May when the June CP was announced. 
  • Strong Middle East exports, including those from Iran, continued to pressure the FOB  AG market. 
  • In addition, demand in China was at a seasonal lull. However it is  expected to pick up slowly as propane dehydrogenation plants raise their   operating rates. Buyers in India were well-stocked from the elections and many  have delayed their purchases due to port congestion.
  • The adjustment thus reflects the movement in the international Contract Price of LPG for the month of July.

Domestic Prices      

Effective 01 July 2019, the oil companies have decreased the price of LPG by P3.36-3.40/kg or about P37.40/11-kg cylinder. Auto LPG likewise decreased by P2.03/liter.

 As of 01 July 2019, estimated price of household LPG in Metro Manila ranges from P551.60-P712.60 per 11-kilogram cylinder.

Shown below are the retail prices of 11 Kg. Household LPG
in Metro Manila from July 2018 to July 2019
Year Domestic
Price		 Adjustment/Kg.
Increase (-Decrease)
2018    
July 580.00-800.00 0.90
August 599.00-819.00 1.75
September 591.45-841.45 1.95
October 650.00-865.00 2.35
November 613.00-785.00 -7.50
December 542.60-714.60 -6.40
2019    
January 543.00-730.00 0.00
February 576.00-755.00 3.88
March 608.00-785.00 2.90
April 615.60-800.00 1.25
May 615.60-798.00 -0.20
June 589.00-750.00 -6.25
July 551.60-712.60 -3.36-3.40

For more information, call the Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: www.doe.gov.ph

 

LPG Price Monitor as of 03 June 2019

LPG Contract Price (CP)

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 an international price benchmark set at the beginning of each month by Saudi Arabia’s state - owned oil company Saudi Aramco.

Aramco's CPs, which set the price of LPG lifted from the Saudi ports of Yanbu, Ras Tanura and Ju'aymah under term supply contracts, are closely watched by the market as they tend to set a base level for LPG pricing for most markets East of Suez.

The DOE refer to the LPG/Saudi CP and forex monthly average changes in determining/monitoring the price adjustments of LPG in the domestic market. Following the timing of the monthly changes in CP, domestic price of LPG also vary every first day of the month and remain constant throughout the whole month.

Like all other petroleum products, 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 June, LPG Contract Price has decreased by US$109.00/MT to US$ 419.50/MT, from US$ 528.50/MT last month.

International LPG Market Development Positions

  • The June propane and butane CPs are within traders' expectations.  
  • The propane CP has returned to a downtrend after briefly rising for May vs. February.
  • The June Butane CP will be down for the first time since the November CP fell from the December CP.
  • The lower CPs came amid ample supply from the US to meet demand from Indonesia and consumers such as Taiwan, while Chinese demand is adequately met by Middle Eastern producers.
  • The adjustment thus reflects the movement in the international Contract Price of LPG for the month of June.

Domestic Prices      

Effective 01 June 2019, the oil companies have decreased the price of LPG by P6.25/kg or about P68.75/11-kg cylinder. Auto LPG likewise decreased by P3.45/liter.

 As of 01 June 2019, estimated price of household LPG in Metro Manila ranges from P539.25-P716.25 per 11-kilogram cylinder.

Shown below are the retail prices of 11 Kg. Household LPG
in Metro Manila from July 2018 to June 2019
Year Domestic
Price		 Adjustment/Kg.
Increase (-Decrease)
2018    
July 580.00-800.00 0.90
August 599.00-819.00 1.75
September 591.45-841.45 1.95
October 650.00-865.00 2.35
November 613.00-785.00 -7.50
December 542.60-714.60 -6.40
2019    
January 543.00-730.00 0.00
February 576.00-755.00 3.88
March 608.00-785.00 2.90
April 615.60-800.00 1.25
May 608.00-785.00 -0.20
June 539.25-716.25 -6.25

For more information, call the Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: www.doe.gov.ph

 

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