Palace orders DOE to verify LPGMA claim of supply shortage

MANILA, Philippines - Malacañang on Wednesday directed the Department of Energy (DOE) to verify the statement of the Liquefied Petroleum Gas Marketers Association (LPGMA) that there will be a shortage in LPG supply during the holidays, a radio report said. Radio dzBB's Aileen Intia quoted Executive Secretary Eduardo Ermita as saying that the Palace does not want oil players to raise prices amid rumors of short supply, especially during the holiday season. Ermita said President Gloria Macapagal Arroyo wants Energy Secretary Angelo Reyes to check whether there is sufficient basis in the statement made by LPGMA president Arnel Ty earlier during the day that their delivery of products may be delayed by one or two days due to the shortage. Among the LPG products that the LPGMA sells are Pinnacle Gas, Cat Gas, Omni Gas, Nation Gas and Island Gas. In an interview over radio dzBB, Ty said the primary reasons for the shortage is the wrong projection of oil companies that resulted in insufficient imported supply, as well as technical problems in the refinery of one of the big three oil giants, Petron Corp. He said, however, that big oil players -- which he said controls about 40 percent of the LPG market -- will still be able to provide LPG on time as they prioritize their own products. But Petron Corp. was quick to deny that the shutdown of their refinery had any impact on LPG supply, saying they had prepared for the holiday season and will not encounter any problem in promptly providing consumers with LPG. In a separate interview over radio dzBB, Petron spokesperson Virginia Ruivivar likewise said LPGMA does not get its supply from Petron, adding that the insufficiency in LPGMA's LPG may just be because of the short supply in the Asian market. A separate dzBB report quoted Shell spokesman Roberto Kanapi as saying Shell does not supply to LPGMA, either. Kanapi likewise said Shell's LPG supply is sufficient even during the busy holiday season, the report said. - GMANews.TV