Overpriced LPG tanks? Retailers may file complaints with police, barangay — group

The LPG Marketers Association on Tuesday warned that retailers selling overpriced 11-kilogram liquefied petroleum gas (LPG) tanks—priced above P1,500 in Luzon and P1,600 in the Visayas and Mindanao by April—could be reported to the police or the nearest barangay.

Arnel Ty, founder of the LPG Marketers Association, said the current suggested retail price (SRP) ranges from P1,350 to P1,400 per tank.

Amid rising shipping costs due to limited access to the Strait of Hormuz, Ty said the SRP in Luzon could increase to only P1,450 to P1,500 by next week.

In the Visayas and Mindanao, prices may be higher by P100 to P250.

“‘Pag lumagpas po diyan, they can complain sa barangay or kaya sa PNP because there is a memorandum of agreement between the Department of Energy and the Philippine National Police," Ty said in an interview on Unang Balita.

(If the price goes beyond that, consumers can complain to the barangay or the PNP because there is a memorandum of agreement between the Department of Energy and the Philippine National Police.)

"‘Yung P1,600 plus is overpriced po ‘yan,” he added.

(A price of over P1,600 per tank is already considered overpriced.)

“Kahit magtaas sa susunod ng mga linggo, ang amin pong nakikitang SRP… hindi na pwedeng sabihin ng mga retailer na wala silang kita. We already factored in their income dito,” he added.

(Even if prices increase in the coming weeks, with this SRP, retailers can no longer say they are not earning. We already factored in their income.)

The group earlier projected that the price of an 11-kilogram LPG tank could rise to P1,500 in April due to higher shipping costs linked to tensions in the Middle East.

Price cap concerns

Ty, however, appealed to the government not to impose a price cap on LPG, warning it could lead to supply shortages.

“We will end up like India and Vietnam na pipila talaga, nagkakaroon ng ubusan ng LPG, dahil mapipilitan pong hindi mag-import ang private sector. Kapag hindi kikita, bakit pa sila magpaparating ng LPG?” he said.

(We will end up like India and Vietnam, where people fall in line and LPG runs out, because the private sector may stop importing. If they don’t earn, why would they bring in LPG?)

“So in the end, it will turn into a government subsidy, which is worse because the government will have to spend more, and it will not be effective, as seen in other countries,” he added.

Over the weekend, Senator Sherwin Gatchalian urged the Department of Energy (DOE) and the Department of Trade and Industry (DTI) to consider imposing a price cap on LPG amid fuel price shocks stemming from the Middle East crisis.

The LPG Marketers Association earlier said an LPG shortage is unlikely in the coming months, with inventory projected to last 35 to 45 days—an improvement from the DOE’s earlier estimate of up to 24 days as of March 20.—Giselle Ombay/MCG, GMA News