Petron and Phoenix Petroleum have announced that they raised the prices of its cooking fuel liquefied petroleum gas (LPG) Php5.20 per kilogram or Php57.20 for the standard 11 kilogram cylinder on Thursday.
Solane, meanwhile, increased its LPG prices by Php5.19/kg
Auto-LPG players, for their part, have advised a Php2.90 per liter hike on their products, which the transport sector uses.
Oil firms said the price hike was caused by the upswing in international contract prices, primarily anchored on cost movements of Saudi Aramco’s LPC contract prices, which serves as a benchmark for Asian markets.
Before the price adjustment, the pick-up price for the usual household cooking size had been at Php663 to Php924, according to the Department of Energy’s monitoring report.
Global industry experts emphasized that the surging LPG prices has been due to the increasing demand as many countries prepare for reopening from COVID-19 lockdowns, particularly in China, United States, and Europe.
Other countries are also beginning to build up on their stock to prepare for their heating requirements during the winter seasons, which has been exerting heavier pressure on LPG demand.
Meanwhile, the value of the peso against the US dollar has likewise been adding up a financial pinch to LPG commodities since the country remains largely dependent on imports for its cooking fuel needs.