LPG shortage unlikely in coming months, group says

A shortage in the supply of liquefied petroleum gas (LPG) is unlikely in the coming months, the LPG Marketers Association said Thursday.

Arnel Ty, founder of LPGMA, said the country’s LPG supply is now projected to last 35 to 45 days, an improvement from the Department of Energy’s (DOE) earlier estimate of up to 24 days as of March 20.

“But we already updated that data last Tuesday… nasa 35 to 40 days inventory po ang LPG as of now,” Ty said in an interview on Balitanghali.

He noted that the industry has been directed to procure available LPG supply in the market following a meeting with Energy Secretary Sharon Garin.

The Department of Energy earlier said current LPG supply is still three times higher than the seven-day minimum inventory requirement for suppliers.

It also noted ongoing coordination with countries where the Philippines imports petroleum products.

Ty said the group does not expect a shortage, citing continued private sector procurement and the start of government-to-government sourcing arrangements.

“Ang projection po natin, walang mangyayaring shortage (Our projection is that no shortage will occur)... The private sector has been instructed to continue procurement regardless of available prices,” he said.

Prices may still rise

While supply is expected to remain stable, LPG prices may still increase due to higher shipping costs.

Based on DOE monitoring, LPG prices in Metro Manila ranged from P825 to over P1,000 per tank in March.

Ty said freight costs have surged due to disruptions in shipping routes from the Middle East, forcing vessels to take longer routes via the United States, Africa, Canada, and Australia.

“As a result, freight costs passed on to LPG have reached around P30 per kilo,” he said.

He added that prices could rise further, with projections of P1,400 to P1,500 per tank by April, driven by incoming higher-cost inventory.

Meanwhile, President Ferdinand Marcos Jr. recently signed into law Republic Act No. 12316, granting him emergency powers to suspend or reduce excise taxes on fuel for up to three months, subject to conditions, until December 31, 2028.—Vince Angelo Ferreras/MCG, GMA Interated News