P18/kg LPG price hike in October blunts excise tax suspension — LPGMA

The P18-per-kilogram increase in liquefied petroleum gas (LPG) prices expected this October will offset the recently implemented suspension of the excise tax on the fuel, the LPG Marketers Association (LPGMA) said Saturday.

In a “24 Oras Weekend” report by Bea Pinlac, a P10-per-kilogram increase took effect on October 3, while additional increases of P5 per kilogram and P3 per kilogram are expected on October 10 and 17, respectively.

“The world market price is higher than the reduction resulting from the excise tax suspension,” LPGMA President Arnel Ty said, explaining why the tax suspension has failed to bring down LPG prices amid rising global prices.

Ty said China currently has an export ban on petroleum products. While crude oil is also coming from the United States, he said its arrival is taking longer, contributing to higher prices.

“We don’t know how long they will implement it… There is crude oil coming from the US, but it takes time to arrive. There is a slight delay, but we still have products coming, although they will be more expensive because of the distance the ships now have to travel,” Ty said.

Ty said the LPGMA cannot yet give an accurate forecast of LPG prices in November or determine whether the increases will continue through Christmas.

He noted, however, that the results of the US midterm elections in November could play a significant role, as they could create a new opportunity for negotiations between the United States and Iran.

Businesses

Some laundry shops in Quezon City use LPG in their operations. In Pinlac’s report, several business owners and workers expressed concern about the impact of rising LPG prices on their operating costs.

Ruby Sagucio, a laundry shop worker, said they have no choice but to continue buying LPG despite the price increases because their business depends on it.

“Eh kung tataas ulit ‘yon, wala kaming magagawa. Bibili pa rin kami kasi negosyo ‘to eh,” Sagucio said.

(If prices go up again, we can’t do anything about it. We will still have to buy LPG because this is our business.)

“Hindi kami puwedeng basta-basta magtaas eh, baka mamaya mabawasan ‘yung client. Kami muna ang tatanggap,” Sagucio added.

(We can’t simply raise our prices because we might lose clients. We will have to absorb the additional cost for now.)

Aside from rising LPG prices, the laundry shops also face the possibility of reduced water supply in Metro Manila amid Super El Niño.

At the laundry shop where Jasmine Rosales works, employees plan to store water in preparation for a possible reduction in supply.

“Mas mahirap din po kasi pag tubig na po ang nawala. Mag-iimbak po kami ng tubig para po kung sakaling maubusan po kami ng water, kahit papaano po makakapaglaba-laba kami,” Rosales said.

(It would be even more difficult if the water supply is cut. We will store water so that if we run out, we can still continue doing laundry somehow.)

When LPG prices increased in April, the laundry shop raised its rates, resulting in a slight decline in customers.

With another LPG price hike taking effect, Rosales said they may be forced to raise their rates again to avoid operating at a loss. — Lyjah Tiffany Bonzo/MCG, GMA News

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