LPG hike of up to P27.50 per 11-kg cylinder seen amid Middle East tensions

The price of liquefied petroleum gas (LPG) is expected to increase by up to P27 per 11-kilogram cylinder following tensions in the Middle East.

In a "24 Oras" report on Friday by Mariz Umali, consumers lamented the expected increase. Restobar owner Jess Xavier expressed concern about how this would impact his business.

“I need to sustain my business… it will be passed to the consumer,” Xavier said.

While the Department of Energy has not set an exact price hike yet for LPG, the LPG Marketers Association (LPGMA) estimated that there could be a P2 increase per kilogram, or P27.50 for an 11-kilogram tank.

The LPGMA said that the price of LPG has increased in the global market because of tensions in the Middle East.

“In the past few days, there was suddenly conflict in the Middle East between the United States, Saudi Arabia against Iran. So that triggered the price increase of LPG,” LPGMA founder and chairman Arnel Ty said in Filipino.

A rollback will be hard to expect in the coming months, especially since winter stockpiling will begin

One of the tips that Ty offered to citizens to save LPG is that when they cook, they should prepare all their ingredients ahead of time and cook all at once. This could save them 20% of their LPG consumption.

There had been a momentary peace in the region, but tensions reignited after Iran attacked a US base in Kuwait as retaliation for Washington’s recent attacks.

As a result, the possible rollback on other fuel backs could be affected.

Department of Energy-Oil Industry Management Bureau Director Rino Abad said that the situation was very volatile.

“There are a lot of aspects rather than the supply-demand balance,” Abad said. —Jean Mangaluz/LDF, GMA News