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 January 2020, LPG Contract Price has increased by US$ 132.00/MT to US$ 582.50/MT, from US$ 450.50/MT last month.
International LPG Market Development
- The January propane and butane CPs are slightly above traders' expectations.
- The propane and butane CPs each rose for the fourth consecutive month and reflect the prevailing tightness of the Middle East market.
- While regional demand has been healthy, current high prices -- which jumped to more than one-year highs this week -- have prompted Chinese petrochemical makers to cut down usage of propane feedstock in their propane dehydrogenation plants. Propane has risen to a premium to naphtha and removed LPG's viability as an alternate feedstock.
- Also, the additional crude cuts have caused an imbalance in global LPG trade, and it is showing up in price signals in the Middle East, Asia, and the US Gulf Coast. Lost Middle East supply into the Northeast Asian market has put an upward price pressure on the Asian LPG prices. Sources have indicated an active tender market for January cargoes into India, China, Japan, and Indonesia due to strong seasonal demand.
- The adjustment thus reflects the movement in the international Contract Price of LPG for the month of January.
Domestic Prices
Oil companies increased the price of LPG effective 01 January 2020 by P7.55/kg or about P83.05/11-kg cylinder. Auto LPG likewise increased by P4.25/liter.
As of 01 January 2020, household LPG in Metro Manila ranges from P677.05-P828.69 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 | 677.05-828.69 | 7.55 |
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