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.
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Shown below are the retail prices of 11 Kg. Household LPG |
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| 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: oilmonitor@doe.gov.ph
Website: www.doe.gov.ph