Caltex to slash LPG price by P0.56 midnight

Caltex Philippines on Saturday announced it will cut the price of its liquefied petroleum gas (LPG) products by 56 centavos at midnight. The oil giant followed Petron Corp’s move to slash LPG price by 50 centavos. This month, the oil companies and the Department of Energy (DOE) have been anticipating a P1 LPG price reduction due to the drop in international contract price of LPG. For the month of March, international contract prices of LPG dipped to $506 per metric ton (MT) from $26 per MT in February. Energy Secretary Raphael P.M. Lotilla noted that the drop in contract prices abroad would trigger price cuts on LPG this month. “The LPG price cut would be triggered by the $20 per MT drop in LPG international contract prices," Lotilla said. LPG international contract price is determined and set on a monthly basis. This is the basis being used by local oil companies in pricing their products as most of the LPG products are being imported. Independent Philippine Petroleum Companies Association (IPPCA) chairman Fernando Martinez last week said they also expect LPG price to drop this month. Oil companies have already cut their LPG products’ prices by a total of P1 per kg for the past two consecutive weeks due to the drop in LPG international contract prices.- GMANews.TV