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 an international price benchmark set at the beginning of each month by Saudi Arabia’s state - owned oil company Saudi Aramco.
Aramco's CPs, which set the price of LPG lifted from the Saudi 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 East of Suez.
The DOE refer to the LPG/Saudi CP and forex monthly average changes in determining/monitoring the price adjustments of LPG in the domestic market. Following the timing of the monthly changes in CP, domestic price of LPG also vary every first day of the month and remain constant through out the whole month.
Like all other petroleum products, the Philippines has no influence over the LPG CP as the country’s domestic requirement is small versus the world demand.
For the month of August 2020, LPG Contract Price has increased by US$ 5.00/MT to US$ 351.00/MT, from US$ 346.00/MT last month.
International LPG Market Development
- Saudi Aramco set the August propane term contract price at $365/mt and the butane CP at $345/mt, both up $5/mt from July.
- August CP was in the mid-range of market expectations as traders had expected a wide range for the August CPs, with propane seen between $340/mt and $380/mt and butane about $20/mt below propane.
- Supply and demand for propane is seen to be balanced as there is no great demand while supply is thin, Platts noted. It further added that rising demand for butane in Asia would likely start drawing supply away from Europe, where US LPG volumes mostly headed in the past few months, and thus would lead tons of LPG moving over the Pacific instead.
- Some Asian refinery steam crackers plan to use LPG as alternate feedstock to naphtha through September, after acquiring cargoes when LPG was at steep discounts to naphtha.
- Asia is amply supplied with Western and Middle East LPG.
Domestic Prices
Oil companies increased the price of LPG effective 01 August 2020 by P0.15/kg or about P1.65/11-kg cylinder. Auto LPG likewise increased by P0.10/liter.
As of 01 August 2020, household LPG in Metro Manila ranges from P562.00-782.00 per 11-kilogram cylinder.
|
Shown below are the retail prices of 11 Kg. Household LPG |
||
| Year | Domestic Price |
Adjustment/Kg. Increase (-Decrease) |
| 2019 | ||
| January | 543.00-730.00 | 0.00 |
| February | 576.00-755.00 | 3.88 |
| March | 608.00-785.00 | 2.90 |
| April | 615.60-800.00 | 1.25 |
| May | 615.60-798.00 | -0.20 |
| June | 589.00-750.00 | -6.25 |
| July | 550.00-695.00 | -3.36-3.40 |
| August | 550.00-695.00 | 0.00 |
| September | 550.00-695.00 | 0.00 |
| October | 575.00-737.00 | 4.50 |
| November | 594.00-795.00 | 0.30 |
| December | 594.00-745.64 | 0.25 |
| 2020 | ||
| January | 677.05-828.00 | 7.55 |
| February | 655.00-778.00 | -2.20 |
| March | 611.00-795.00 | -3.90 |
| April | 501.00-770.00 | -9.60 to -10.70 |
| May | 536.00-854.00 | 5.80 |
| June | 533.00-854.00 | -0.28 |
| July | 560.00-780.00 | 0.50 |
| August | 562.00-782.00 | 0.15 |
| Note: Prices for August are estimates | ||
For more information, call the Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: www.doe.gov.ph