LPG Monitor as of June 2020


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 June 2020, LPG Contract Price has decreased by US$ 4.00/MT to US$ 336.00/MT, from US$ 340.00/MT last month.

International LPG Market Development

  • The movement in LPG CP for June is accounted to the present situations in both propane and butane markets.  Compared to the May price level, propane increased this month by US$10/MT to US$350/MT while butane decreased by US$10/MT to US$330/MT.
  • The oil output cut in Saudi for June, in line with the move by OPEC + producers, have also reduced production of natural gas liquids, including propane and ethane, limiting feedstock supply to domestic petrochemical plants.  To make up for less ethane supply to domestic demand, more propane is diverted into the feedstock pool, which in effect further reduced supply for export.
  • Butane is in a relatively better volume for export as the product is used less in the domestic petrochemical sector.
  • Platts noted that the propane premium to butane should have widened further, as demand from India and Indonesia, the major importers of mixed propane/butane cargoes, have also paused after a rush in imports for April-June delivery.
  • However, traders are of the view that Saudi Aramco set the June term CPs at parity in an overall market that is supplied with propane-heavy US CFR cargoes.  Around 1.4 million to 1.6 million metric tons of US LPG is expected to arrive Asia in June.

Domestic Prices      

Oil companies decreased the price of LPG effective 01 June 2020 by P0.30/kg or about P3.30/11-kg cylinder. Auto LPG likewise decreased by P0.17/liter.

As of 01 June 2020, household LPG in Metro Manila ranges from P532.70-850.40 per 11-kilogram cylinder.

Shown below are the retail prices of 11 Kg. Household LPG
in Metro Manila from January 2019 to June 2020

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 677.05-828.69 7.55
February 655.00-778.00 -2.20
March 611.00-795.00 -3.90
April 493.00-680.00 -9.60 to -10.70
May 536.00-853.70 5.80
June* 532.70-850.40 -0.30
* Tentative Domestic Price (Prices will be replaced upon actual monitoring from our Retail Division)

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

 

LPG Monitor as of 02 April 2020


LPG Contract Price (CP)

LPG Contract Price, 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.

Saudi 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 of the 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 throughout the whole month.

Like all other 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 April 2020, LPG Contract Price has decreased by US$228/MT to US$237, from US$465/MT last month.

International LPG Market Development

  • Saudi Aramco's propane and butane CPs posted a third month in a row of month-on-month decline in April, after a fall in the February CP snapped four consecutive months of increases.
  • The April CPs are the lowest since December 1999, when they were also set at $230/mt and $240/mt, respectively, S&P Global Platts data showed. Note that the Philippines’ LPG is a combination of propane (30%) and butane (70%).
  • The downtrend was caused by higher supply from the Middle East and lower demand in China due to measures aimed at containing the coranavirus pandemic.

Domestic Prices      

Oil companies have implemented price decrease of P9.60-P10.70 per kilogram effective 01 April 2020. The rollback is equivalent to about P106-P118 per 11-kg cylinder. Auto LPG likewise decreased by P6.00/liter.

Prices of household LPG in Metro Manila are estimated to range from P493.00-P689.00 per 11-kg cylinder.

Shown below are the retail prices of 11 Kg. Household LPG
in Metro Manila from January 2019 to April 2020

Year Domestic
Price
Adjustment/Kg.
Increase (-Decrease)
January 2019 543.00-730.00 0.00
February 2019 576.00-755.00 3.88
March 2019 608.00-785.00 2.90
April 2019 615.60-800.00 1.25
May 2019 615.60-798.00 -0.20
June 2019 589.00-750.00 -6.25
July 2019 550.00-695.00 -3.36-3.40
August 2019 550.00-695.00 0.00
September 2019 550.00-695.00 0.00
October 2019 575.00-737.00 4.50
November 2019 594.00-795.00 0.30
December 2019 594.00-746.00 0.25
January 2020 677.00-829.00 7.55
February 2020 655.00-778.00 -2.20
March 2020 611.00-795.00 -3.90
April 2020 493.00-680.00* -9.60 to -10.70
* Tentative Domestic Price (Prices will be replaced upon completion of actual price monitoring)

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

Pages