LPG Price Monitor as of 03 September 2018

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.

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 September, LPG Contract Price increased by US$ 34.00/MT to US$ 624.50/MT, from US$ 590.50/MT last month.

International LPG Market Development positions

  • The September propane and butane CPs were within traders' expectations.
  • The  September  propane  CPs  extended  the  recovery  seen  for  August,  as  demand  for  Middle  Eastern cargoes  remain  robust while Chinese  importers  seek  alternative  for  US  tons  due  to  higher  import tariffs.
  • This is the sixth consecutive increase for the butane CP.
  • 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, closely monitor the market as they tend to set a base level for LPG pricing.

Domestic Price

Oil companies increased the price of LPG effective 01 September 2018 by P1.95/kg or about P21.45/11-kg cylinder. Auto LPG likewise increased  by  P1.10/liter. As of 01 September 2018, household LPG in Metro Manila ranges from P591.45 to P841.45per 11-kilogram cylinder.

 
For more information, call theDepartment of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS:(0915) 4469421
 

LPG Price Monitor as of 01 August 2018

LPG Contract Price (CP)

LPG Contract Price (CP), commonly called the "Saudi CP" is the primary driver of LPG pricing in theFar East including the Philippines . It is an international price benchmark set at the beginning of eachmonth by Saudi Arabia’s state-owned oil company Saudi Aramco.
 
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.
 
For the month of August, LPG Contract Price increased by US$25.00/MT to US$ 590.50/MT, from US$ 565.00/MT last month.

International LPG Market Development positions

  • Reportedly, the August propane and butane CPs were above traders' expectations; Western trader said LPG supply in the Middle East is growing, and the increase has been a bit faster than expected.
  • Sources added, that the market has also seen resurgence in Middle Eastern spot trading activity, as Chinese buyers have reduced their imports of US propane since March in anticipation of higher tariffs;
  • Market sources also said that a lack of restocking of LPG inventories in Northwest Europe over the spring and summer months could lead to a rush for product when winter demand kicks back in; moreso since it is also the time to build the stock for the fourth quarter.

Domestic Price

Oil companies increased the price of LPG effective 01 August 2018 by P1.60-1.75/kg or about P19.25/11-kg cylinder. Auto LPG likewise increased by P1.00/liter. As of 01 August 2018, household LPG in Metro Manila ranges from P599.00 to P819.00 per 11-kilogram cylinder.
 
For more information, call the
Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS:(0915) 4469421
 

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