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 November, LPG Contract Price has increased by US$ 10.00/MT to US$ 440.50/MT, from US$ 430.50/MT last month.
International LPG Market Development Positions
- The November propane and butane CPs were at the top end of traders' expectations
- The propane and butane CPs rose for the second consecutive month.
- The firmness of the LPG market was largely due to the return of demand from China after the Golden Week holidays and following plant turnarounds, while Indonesian demand needed to be covered, market sources said
- Indian spot demand, however, has moderated after state importers received acceptances from Middle Eastern producers major without delays or cuts. The steep discount of propane to naphtha may also prompt fresh LPG demand from the petrochemical sector.
- The adjustment thus reflects the movement in the international Contract Price of LPG for the month of November.
Domestic Prices
Oil companies increased the price of LPG effective 01 November 2019 by P0.30kg or about P3.30/11-kg cylinder. Auto LPG likewise increased by P0.15/liter.
As of 01 November 2019, household LPG in Metro Manila ranges from P578.30-P740.30 per 11-kilogram cylinder.
Shown below are the retail prices of 11 Kg. Household LPG |
||
Year | Domestic Price |
Adjustment/Kg. Increase (-Decrease) |
2018 | ||
July | 580.00-800.00 | 0.90 |
August | 599.00-819.00 | 1.75 |
September | 591.45-841.45 | 1.95 |
October | 650.00-865.00 | 2.35 |
November | 613.00-785.00 | -7.50 |
December | 542.60-714.60 | -6.40 |
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 | 578.30-740..30 | 0.30 |
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