THE Department of Energy (DOE) said Tuesday that prices of liquefied petroleum gas (LPG) will drop this September by around P0.40 per kilogram, or equivalent to around P4.40 for a standard 11-kilogram cylinder.
It added that the rollback is imminent despite an increase in the international LPG contract price, which rose from $634 per metric ton in August to $649.50 per metric ton in September.
The DOE said the increase was more than offset by lower freight costs, which declined from $120.82 to $94.41 per metric ton, and a lower average peso-dollar exchange rate, from P61.59 in July to P61.40 in August.
For September, the DOE said that domestic retail prices of an 11-kilogram LPG cylinder are estimated to range from P1,031 to P1,536, although actual prices may vary depending on the brand, location and other market factors.
Energy Secretary Sharon Garin said that while modest, the reduction is still beneficial.
“For families who rely on LPG to prepare their meals every day, every peso saved can go toward other household needs. The reduction may be modest, but consumers should benefit whenever market conditions bring costs down,” Garin said.
The DOE said that international LPG contract prices are determined by global market conditions, and for September, the increase in the contract price was driven mainly by higher crude oil prices, geopolitical tensions and supply constraints in the Middle East, and stronger Asian demand ahead of the winter season.
