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 through out 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 November, LPG Contract Price has decreased by US$ 125.50/MT to US$ 529.50/MT, from US$ 655.00/MT last month.
International LPG Market Development Positions
- The November propane and butane CPs are within traders' expectations.
- The November propane CPs snapped the uptrend seen since the August CP, as higher supplies from the Middle East have more than filled the gap caused by increased Chinese tariffs on US imports.
- The November butane CP retreated after seven monthly increases.
- LPG stocks in Japan by end-September were at comfortable levels, rising 15.3% on-month to 1.587 million mt, as demand continued to drop and imports inched down.
- The decreases reflect the movement in international market of contract price.
Domestic Prices
Oil companies decreased the price of LPG effective 01 November 2018 by P7.50/kg or about P85.50/11-kg cylinder. Auto LPG likewise has decreased by P4.20/liter. As of 01 November 2018, the price of household LPG in Metro Manila ranges from P613.00-P785.00 per 11-kilogram cylinder.
| Year/Month | Domestic Price |
Adjustment/Kg. |
| 2017 | ||
|
December |
550.00-777.00 | |
| 2018 | ||
|
January |
550.00-777.00 | -0.37 |
|
February |
535.00-760.00 | -3.15 |
|
March |
517.00-742.00 | -1.65 |
|
April |
523.00-723.00 | 0.25 |
|
May |
541.00-751.00 | 1.90 |
|
June |
582.00-787.00 | 3.40 |
|
July |
580.00-800.00 | 0.90 |
|
August |
599.00-819.00 | 1.75 |
|
September |
591.45-841.45 | 1.95 |
|
October |
619.45-869.45 | 2.35 |
|
November |
613.00-785.00 | -7.50 |
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