By el Amigo
MANILA – Lower freight charges have pushed domestic liquefied petroleum gas (LPG) prices down this month despite higher international contract prices, giving consumers a PHP0.40-per-kilo reduction, the Department of Energy (DOE) said Tuesday.
For households using the standard 11-kilogram LPG cylinder, the adjustment translates to savings of approximately PHP4.40 per tank.
The DOE said the international LPG contract price climbed to USD649.50 per metric ton in September, up from USD634 per metric ton in August.
The increase was more than offset by a sharp decline in freight costs, which fell to USD94.41 per metric ton from USD120.82 per metric ton.
The peso’s appreciation against the US dollar also provided some relief. The local currency strengthened to an average of PHP61.40 per US dollar in August, compared with PHP61.59 in July.
Following the latest adjustment, consumers can expect retail prices of an 11-kg LPG cylinder to range between PHP1,031 and PHP1,536, depending on the brand and location.
Energy Secretary Sharon Garin said even a small reduction can help households manage their daily expenses.
“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 LPG prices remain influenced by international contract prices, freight charges and movements in the peso-dollar exchange rate.
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