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 throughout 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 October, LPG Contract Price has increased by US$73.50/MT to US$ 430.50/MT, from US$ 357.00/MT last month.

International LPG Market Development Positions

Effective 01 October 2019, the oil companies have increased the price of LPG by P4.46-P4.50/kg or about P49.50/11-kg cylinder. Auto LPG likewise increased by P2.50/liter.

As of 01 October 2019, estimated price of household LPG in Metro Manila ranges from P599.50-P699.50 per 11-kilogram cylinder.