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 March 2020, LPG Contract Price has decreased by US$ 68.00/MT to US$ 465.00/MT, from US$ 533.00/MT last month.
International LPG Market Development
- The propane and butane CPs recorded the second month on month fall in March, after a fall in the February CP snapped four consecutive month of gains.
- Before the actual decline in the CPs of LPG for the month of March, Asian LPG market participants had expected Saudi Aramco's March contract prices for propane and butane to post a second consecutive month-on-month decline as the coronavirus outbreak continues to curb China's domestic LPG consumption and import demand.
- LPG Demand from China -- the biggest buyer of Middle Eastern LPG cargoes -- has been on a downtrend since mid-January as many major Chinese cities impose travel lockdowns in an effort to prevent the spread of the coronavirus, traders said.
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The adjustment thus reflects the movement in the international Contract Price of LPG for the month of March.
Domestic Prices
Oil companies decreased the price of LPG effective 02 March 2020 by P3.90/kg or about P42.90/11-kg cylinder. Auto LPG likewise decreased by P2.20/liter.
As of 02 March, household LPG in Metro Manila ranges from P612.10-735.10 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* | 612.10-735.10 | -3.90 |
| * 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: oilmonitor@doe.gov.ph
Website: www.doe.gov.ph