DOE: Another LPG price hike looms in January

Consumers may have to brace for another hike in the prices of liquefied petroleum gas (LPG) before the end of January, the Department of Energy (DOE) said on Tuesday.   DOE Undersecretary Jose Layug Jr. said the noted that LPG dealers accommodated the DOE's request in December last year to hold off or at least temper price adjustments. "Sa December hindi nagtaas kasi nakiusap tayo huwag magtaas, ngayon siguro babawiin yan," Layug said.   "Very likely sa buwan na ito may isa pa (na price hike) ... Meron kaming calculations, gusto natin dumikit sila, huwag sabihin sa kanila, bantay tayo pag nagtaas uli," Layug said in an interview over radio dzBB. Layug hinted they expect more price hikes this year because of three factors:

• the tension in the Middle East;
• the growing economies in Asia, and
• the recovering economy of the United States.

"Ang demand for oil nila mataas, nagdudulot ng pressure sa langis," he said. Aside from that, he said the Middle East tension may affect the supply of oil.   "Ang gulo sa Gitnang Silangan, talagang nagdudulot ng pangamba at baka magdulot ng supply disruption kaya pataas ng pataas ang presyo. Ang aming dasal sana matapos ang problema sa Middle East at hindi tayo tamaan," he said. P3/kg price hike   He noted that on Monday LPG prices went up by P3 per kilogram (kg), or P33 per 11-kg tank.  Layug said the price hikes implemented by Shell and Eastern Petroleum on Tuesday morning were within the limits set by the DOE.   The two firms hiked prices of their unleaded, regular and diesel products. Shell also hiked prices of its kerosene. He explained that the price hike was part of a monthly price adjustment due to higher world contract prices.   Layug said the DOE earlier asked LPG dealers to stagger big price adjustments.   "Monthly ang paggalaw, ito contract price sa international market tumaas noong December," he said. For this year, he said the Middle East tension may affect the supply of oil.   "Ang gulo sa Gitnang Silangan, talagang nagdudulot ng pangamba at baka magdulot ng supply disruption kaya pataas ng pataas ang presyo. Ang aming dasal sana matapos ang problema sa Middle East at hindi tayo tamaan," he said.   Fuel prices expected to remain high Maenwhile, Layug said there is a chance the prices of fuel may not go down after winter, as they usually did in past years.   LPG Marketers' Association (LPGMA) president and party-list Rep. Arnel Ty insisted the major oil companies, from which his group's members get their LPG supply, imposed a price hike Monday without warning.   "Sa ngayon nag-advise kami sa Department of Energy na kung maari, tawagin o imbitahin ang mga oil companies upang matanong sila bakit di nila ito inannunsyo sa publiko kundi in-implement agad nila ito sa small players," Ty said in an interview on dzBB radio late Monday.   He said the sudden price hike had forced them to likewise increase the prices of their products.   For now, he said LPGMA members have to increase prices of their products by up to P33 per 11-kg tank.   A report on dzBB radio Tuesday said this translated to a price of about P650 for an 11-kg tank.   The dzBB report said world LPG prices went up by $82 per metric ton, or P4.50 per kilo.   The report added that after the P3/kilo hike, the LPGMA may also impose another price hike of P1.50/kilo next week. - VVP, GMA News