LPG prices to rise by P18/kg in October 

The price of liquefied petroleum gas (LPG) is expected to rise by P18/kg in October due to the ongoing Middle East conflict.

In a "24 Oras" report from Raffy Tima on Friday, the first tranche of the LPG price hike will begin on Saturday, with the following increments to come in the following weeks. For Regasco tanks, their prices rise by P10/kg on Saturday.

“Ang aming advice sa Department of Energy, we will be implementing P10 starting tomorrow, October 3, and then another P5 on October 10 and then another P3 on October 17,” LPG Marketers Association founder Arnel Ty.

Once the three tranches are implemented, an 11-kilogram LPG tank could cost up to P1,600 from its current price of P1,400.

The LPG hike is driven by the ongoing conflict in the Middle East, as well as the failed peace negotiations between the United States and Iran.

While there are LPG supplies, the contract price and freight costs are high because the Strait of Hormuz is closed.

“Nag-announce po ang China na they are banning their export of finished product so hindi po namin alam pa ang magiging outcome po nyan kung ano ang impact but currently we have been ordered by the Department of Energy na mag-source na kami ng product sa ibang mga bansa,” Ty said.

(China announced that they are banning their export of finished products so we do not know what will be the outcome and what the impact is, but currently we have been ordered by the Department of Energy to source products from other countries.)

Most affected by the expected price hike are the small businesses, including several carinderias in Quezon City.

“Dati nasa P700 plus po lang yung 11 kilos na kinukuha namin… So ngayon umaabot na sa P1100,” carinderia owner Jessie Jumawan Rabing said. (Before, the 11 kilos we used to get was P700 plus… so now, it has reached up to P1100.)

Rabing said that this was already the discounted rate since he was a consistent customer of the supplier. Despite this, he said he has no plan to pass the cost to the customer.

Meanwhile, another nearby carinderia used to have prices P5 lower last week, but now they have to match their neighboring stores.

Cook Antonio Ferrer said that they did not plan to save money by reducing portions, as customers might be dissuaded from buying.

“Hindi na babalik yun,” Ferrer said. (They will no longer come back.) —LDF, GMA News