LPG Price Monitor as of 02 July 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 July, LPG Contract Price increased by US$ 5.50/MT to US$ 565.50/MT, from US$ 560.00/MT last month.

International LPG Market Development positions

  • The July propane and butane CPs are steady to slightly higher than traders' expectations;
  • The July propane CP reflect the first fall after two straight sessions of increases, while the butane CP continued on its fourth straight session of increase , S&P Global Platts data showed;
  • Demand for evenly split cargoes and butane from India and Indonesia have lent support to butane values over propane;
  • 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.

Domestic Price

Oil companies increased the price of LPG effective 01 July 2018 by P0.90/kg or about P10.00/11-kg cylinder. Auto LPG likewise increased by P0.50/liter. As of 02 July 2018, household LPG in Metro Manila ranges from P580.00 to P800.00 per 11-kilogram cylinder.

 

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

LPG Price Monitor as of 01 June 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. Foll owing 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 ha s no influence over the LPG CP as the countr y’s domestic requirement is very small versus the world demand.

For the month of June , LPG Contract Price has increased by 1 1.2 % or US$ 5 6 . 5 0 per metric ton to US$ 560 .00/MT , from US$ 503.50 /MT in May . This would translate to P 3 . 40 per kilogram price adjustment .

Reasons for Price Increase

  • Sentiment in the region is healthy, supported by demand from the petrochemical sector
  • Traders are also seeking propane over the past week to meet demand from regional consumers such as Indonesia and Taiwan

Domestic Prices      

Effective 01 June 2018, most of the oil companies have increased their price by P 3.40 /kg , resulting to a net increase of P0.38/kg since January of this year.

As of today, initial price monitoring of LPG household in Metro Manila, ranges from P 582.00 - 787.00. Details of the monitored prices in Metro Manila are posted at the DOE website - Price Watch .

 

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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