LPG sellers urged to impose right prices amid excise tax suspension

The Liquefied Petroleum Gas Marketers’ Association (LPGMA) on Wednesday called on sellers to charge the correct LPG prices on their customers after the government removed the excise tax on LPG and kerosene products amid the high pump prices in the country.

In an interview on “Balitanghali,” LPGMA founder Arnel Ty said the current cost of LPG should range from P1,455 to 1,567.

“Sa panahon ngayon after the reduction o suspension of the excise tax plus ‘yung pagbaba po ng crude oil, hindi po dapat umaabot ng gano’ng kalaking halaga,” Ty said, referring to some LPG products being sold at P1,700.

(At this time, after the reduction or suspension of the excise tax, plus the decrease in crude oil prices, it should not reach such a high amount.)

“Ang amin pong panawagan sa mga tindahan po ng LPG na may mga ganyang presyo ay kailangan po nilang baguhin ang kanilang price board dahil masyado pong mataas 'yan,” he added.

(Those who are selling LPG at this price, we urge them to change their price board since it’s too high.)

Ty said their members have implemented price adjustments for LPG after President Ferdinand Marcos Jr. announced the removal of the excise taxes on LPG and kerosene.

“So sa ilalim ng kapangyarihan na binigay sa atin ng batas, tinanggal ko na ang excise tax sa LPG at sa kerosene,” Marcos said.

(Under the power provided by law, I removed the excise tax on LPG and kerosene.)

“Ang katumbas nito ay tatlong piso at tatlumpu’t anim ah how much is this? P3.36. P3.36 ang bawas ng kada kilo ng LPG. Halos P37 sa isang tangke ang mababawasan ng presyo. At P5... sorry, P5.65, P5.65 kada litro ng kerosene,” the President added.

(This is equivalent to P3.36 ... P3.36 lesser per kilo of LPG. Almost P37 in one tank would be lessened. And P5 per liter of kerosene.)

In March, Marcos enacted Republic Act 12316 that gave him emergency powers to suspend or reduce the excise tax rate on fuel products.

Meanwhile, Ty disagreed with Senator Sherwin Gatchalian’s proposal to impose a price cap on LPG, as it may discourage LPG importers from importing supplies.

“I think ‘yun hong panukalang ‘yan ay medyo doon po kami hindi sumasang-ayon dahil baka ho ito ay maging sanhi para ‘yung mga LPG importers ay hindi ho mag-angkat ng kanilang produkto. Dahil kung magkakaroon ng price cap at malayo doon sa presyong binibili namin sa international market ay baka maging reason pa ito para sa ating problema sa product shortage,” Ty said.

(I think we do not quite agree with that proposal because it might cause LPG importers to stop importing their products. If a price cap is imposed and it is far from the price we buy in the international market, it could even lead to problems with product shortages.)

In late March, Gatchalian called on the Department of Energy (DOE) and the Department of Trade and Industry (DTI) to consider imposing a price cap on LPG.

This is because he viewed the impending increase in LPG costs as “an added financial burden on ordinary Filipino consumers” amid fuel price shocks stemming from the Middle East crisis.

Ty assured that the country has enough LPG supply to last about 50 days.

“Ang forecast po natin ay currently because of the summer season and the demand was down by 30% ay meron po tayong mga around 50 day inventory, kaya po so far ang stock inventory po ng ating bansa ay sufficient, wala ho tayong magiging problema pagdating po sa mga darating pang panahon,” Ty said

(According to the recent forecast, because of the summer season and demand being down by 30%, we have around 50 days of inventory. So far, the country’s stock levels are sufficient, and we do not expect any problems in the coming period.)

Earlier, the DOE said the government, through state-run Philippine National Oil Company (PNOC), has ordered 22,000 metric tons (MT) or 22 million kilos of LPG to boost the country’s buffer stock amid the Middle East conflict.

DOE Undersecretary Alessandro Sales said the delivery is expected between the second to third week of May to boost the country’s LPG buffer stock. — JMA, GMA News