LPG Price Monitor as of 01 April 2019

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 April, LPG Contract Price has increased by US$18.00/MT to US$ 529.00/MT, from US$ 511.00/MT last month.

International LPG Market Development Positions

  • The April propane and butane CPs are within traders' expectations.  
  • Traders had forecast Aramco to set the propane CP at between $510/mt and  $520/mt, and butane on par or higher than March.
  • This is the third consecutive increase in CP in the face of tightening supply.
  • The LPG market was supported due to the OPEC/non-OPEC coalition-led  crude oil production cuts that have reduced associated gas output, a lingering two-tiered market amid the China-US trade war and US sanctions on Iran-origin cargoes, as well as lower US cargo arrivals for March and  April, market participants had said.
  • The increase reflects the movement in the  international market of contract price.  

Domestic Prices      

Oil companies have increased the price of LPG effective 01 April 2019 by P1.25/kg or about P13.75/11-kg cylinder. Auto LPG likewise increased by P0.68/liter. As of 01 April 2019, household estimated price of LPG in Metro Manila ranges from P621.00-P798.00 per 11-kilogram cylinder.

Shown below are the retail prices of 11 Kg. Household LPG
in Metro Manila from July 2018 to April 2019
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 621.00-798.00 1.25

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

 

LPG Price Monitor as of 01 March 2019

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, LPG Contract Price has increased by US$50.00/MT to US$ 511.00/MT, from US$ 461.00/MT last month.

International LPG Market Development Positions

  • The March propane and butane CPs are within the higher range of traders'  expectations.
  • This is the second consecutive increase in CP, as the February CP was  also $50/mt higher month on month for both propane and butane.  
  • Market participants said LPG supply was tight for March, bolstered by  lack of US cargoes going to China, and Saudi Aramco had deferred at least two  March cargoes to later in the year.
  • The increase reflects the movement in the  international market of contract price.    

Domestic Prices      

Oil companies have increased the price of LPG effective 01 March 2019 by P2.90/kg or about P31.90/11-kg cylinder. Auto LPG likewise increased by P1.65/liter. As of 01 March 2019, household estimated price of LPG in Metro Manila ranges from P607.90-P786.90 per 11-kilogram cylinder.

Shown below are the retail prices of 11 Kg. Household LPG
in Metro Manila from July 2018 to March 2019
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 607.90-786.90 2.90

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

 

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