LPG Monitor as of 01 April 2025

LPG Contract Price (CP)

LPG Contract Price (CP), commonly called the “Saudi CP” is the primary driver of LPG pricing in the Far East including the Philippines. It is the international price benchmark set at the beginning of each month by Saudi Arabia’s state - owned oil company Saudi Aramco.

Saudi Aramco's CPs, which set the price of propane and butane lifted from the Saudi Arabian ports of Yanbu, Ras Tanura and Ju'aymah under term supply contracts, are closely watched by the market as they tend to set a base level for LPG pricing for most markets of Suez.

The DOE refers to the LPG/Saudi CP and monthly average forex in estimating the price adjustments of LPG in the domestic market. Following the timing of the monthly changes in CP, domestic price of LPG also changes every first day of the month and remain constant until the next adjustment in the succeeding month.

Like all other oil products, the Philippines has no influence over the LPG CP as the country’s domestic requirement is insignificant versus the world demand.

The LPG Contract Price for April is unchanged from the previous month at US608.00/MT, and lower by US$10.50/MT (2%) compared to the same month last year at US$618.50/MT.

 

International LPG Market Development

Market News reports cited the following bearish factors behind the decrease of the month’s LPG Contract Price:

  • Saudi Aramco set its term contract prices for April at $615/mt for propane and at $605/mt for butane, both unchanged from March’s CPs, the company said in a statement released March 27. 
  • The Asian LPG was expected to remain rangebound with improving demand supported by the petrochemical sector. 
  • While Saudi Aramco has reduced the operational tolerance for term LPG cargoes to minus 10%-0% for April loadings from minus 10% to 10% for March, market participants, are confident that LPG supply in the Middle East remains healthy.
  • Moreover, OPEC+ plans to unwind crude oil production cuts starting in April, which could slightly increase in LPG supply from the likes of Saudi Arabia, UAE and Kuwait. S&P Global Commodity Insights analysts estimate that for every 1 million b/d increase in oil production in the Middle East, the corresponding LPG increment would be around 5,000 mt/day.
  • Strengthening US LPG prices had weakened arbitrage economics to Northwest Europe and tightened supply.  In the Mediterranean, arbitrage economics continued to show some strength, as seasonal demand for LPG and a lower-than-usual supply elevated the flow of US cargoes.

 

Domestic Prices      

Starting 01 April 2025, the oil companies implemented a decrease of P0.25 to P0.27 per kilogram in household LPG or P2.75 to P2.97 per 11-kg cylinder.  The prices of 11-kg cylinder are estimated to range from P857.25 to P1,127.25 per 11-kilogram cylinder. 

 

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Auto LPG likewise decreased by P0.26/liter.  The price of Auto-LPG is estimated at P42.09 per liter.

 

For more information, call the Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Website: www.doe.gov.ph

LPG Monitor as of 03 March 2025

LPG Contract Price (CP) 

LPG Contract Price (CP), commonly called the “Saudi CP” is the primary driver of LPG pricing in the Far East including the Philippines. It is the international price benchmark set at the beginning of each month by Saudi Arabia’s state - owned oil company Saudi Aramco. 

Saudi Aramco's CPs, which set the price of propane and butane lifted from the Saudi Arabian ports of Yanbu, Ras Tanura and Ju'aymah under term supply contracts, are closely watched by the market as they tend to set a base level for LPG pricing for most markets of Suez. 

The DOE refers to the LPG/Saudi CP and monthly average forex in estimating the price adjustments of LPG in the domestic market. Following the timing of the monthly changes in CP, domestic price of LPG also changes every first day of the month and remain constant until the next adjustment in the succeeding month. 

Like all other oil products, the Philippines has no influence over the LPG CP as the country’s domestic requirement is insignificant versus the world demand. 

The LPG Contract Price for March is lower than the previous month by US$20.00 (3%) at US608.00/MT, and lower by US$29.00/MT (5%) compared to the same month last year at US$637.00/MT. 

 

International LPG Market Development1 

Market News reports cited the following bearish factors behind the decrease of the month’s LPG Contract Price: 

  • Saudi Aramco set its term contract prices for March at $615/mt for propane and $605/mt for butane, both lower than February's CPs.   

 

  • In February, around 440,273 mt of LPG world supply came from Saudi Arabia, significantly lower than in previous month at 709,000 mt and 695,072 mt in February 2024. 

 

  • In Asia, China received 2.625 million mt of LPG (2.092 million mt of propane and 444,000 mt of butane) in February, down 12.7% month over month but up 23% year over year.  China's propane inflows accounted for 79.7% of its total LPG imports in February, with most of the propane used as feedstock in the country's numerous propane dehydrogenation plants. 

  • Iran is China's second-largest LPG supplier after the US. In February, Iran's LPG inflows accounted for 24.38% of China's overall LPG imports and 65.57% of total inflows from Middle Eastern suppliers, according to the data. 

  • The market expects less LPG supply from the Middle East in the coming months, particularly from Saudi Aramco amid the startup of new propane dehydrogenation (PDH) plants. 

  • In Europe market, demand for large propane cargoes has inched down as warmer temperatures see buyers shy away from propane for heating purposes. Particularly in Northwest Europe, supply of butane appeared to have inched up while gas going into Eastern Europe are flowing from Bulgaria and Romania. 

  • West Mediterranean LPG market fundamentals remained tight as turnarounds and strikes across the region caused logistical issues. 

  •  

Domestic Prices 

Most of the oil companies decreased their price of LPG, effective 01 March 2025, by P1.20/kg or about P13.20 per 11-kg cylinder.

Auto LPG likewise decreased by P0.86/liter. 

Starting 01 March 2025, household LPG in Metro Manila is estimated to range from around P851.00 to P1,131.00 per 11-kilogram cylinder. 

For more information, call the Department of Energy: 

Pricing: 840-2187 

LPG: 840-2130 

Fuels: 840-5669 

SMS: (0915) 4469421 

Website: www.doe.gov.ph 

 

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