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 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 September, LPG Contract Price has decreased by US$6.00/MT to US$ 357.00/MT, from US$ 363.00/MT last month.
International LPG Market Development Positions
- The September propane and butane CPs were at the higher end of traders' expectations.
- The propane CP fell for the fourth-straight month, after rising from January to May. This reflected the prevailing ample supply coming from the US, while demand has been limited by the US-China trade war which diverted US supply to other Asian buyers.
- However, butane had found support from India's resurgent demand, while Middle East supply of butane and mixed cargoes have been limited by lower Iranian exports, trade source said.
- The adjustment thus reflects the movement in the international Contract Price of LPG for the month of September.
Domestic Prices
With the slight increase on the price of LPG CP, no price movement was implemented by the oil companies for the month of September.
As of September 2019, prices of household LPG in Metro Manila remains within the range of P550.00-P695.00 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) |
| 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 |
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