Retailers reducing LPG prices on lower world rates

MANILA, Philippines – Independent cooking gas retailers would be cutting anew their prices on Tuesday to reflect the commodity’s lower rates in the world market. In an interview, LPG Marketers Association (LPGMA) President Arnel U. Ty said their members would cut P1 per kilogram (kg) at 12:01 a.m. Independent retailers, so-called since they are not under nor affiliated with the major liquefied petroleum gas (LPG) sellers, on Saturday reduced prices by P3/kg to reflect a $58-per-metric-ton drop in contract price this month from January, or $505 per metric ton. An 11-kg cylinder tanks would sell at P511 among independent sellers. LPGMA holds 30 percent of the Luzon market and includes brands such as Pinnacle Gas, Cat Gas, Omni Gas, Nation Gas, and Island Gas. Bulk seller Liquigaz Philippines Corp., meanwhile, has confirmed that the commodity’s price is on a downtrend. "Liquigaz is just a market follower so if there’s a seller that will bring down prices, we’ll just follow. But price indications are down so we can expect lower LPG price," said Iñigo O. Golingay, Liquigaz senior marketing manager. "Besides, the market is already saturated with LPG supply so consumers can really expect prices to be low," he added. Liquigaz, aside from supplying LPGMA members, also serves commercial clients such as Mariwasa Siam Holdings Inc., Asia Brewery Inc., McDonald’s Philippines (Golden Arches Development Corp.), Chowking Food Corp., SM North Edsa, Max’s Restaurant, and Andok’s Litson Corp. Petron Corp., which retails Gasul and holds 38 percent of the market, meanwhile, said it had to wait for the end of the month, or this week, to determine the contract price for March. LPG supply was tight in December due to the holiday demand. The seasonally high demand pushed prices to about P600 from P380 per tank. LPG prices as of Feb. 14 ranged between P500 and P580 per tank. - Ava Kashima K. Austria, BusinessWorld