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: oilmonitor@doe.gov.ph
Website: www.doe.gov.ph

 

LPG Price Monitor as of 01 February 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 February, LPG Contract Price has increased by US$38.00/MT to US$ 461.00/MT, from US$ 423.00/MT last month.

International LPG Market Development Positions

  • The February propane and butane CPs are within the higher range of  traders' expectations.
  • The February propane CP bucked the decline seen since the November CP.
  • Volumes from major Middle East producers such as Aramco, Qatar and Kuwait have been sufficient to fill Chinese demand caused by a gap in US supply following higher import tariffs, this was countered by the sharp fall  in November-lifting shipments from Iran after recent US sanctions.
  • The increase reflects the movement in the  international market of contract price.  

Domestic Prices      

Oil companies have increased the price of LPG effective 01 February  2019 by P3.88/kg or about P42.68/11-kg cylinder. Auto LPG likewise increased by P2.17/liter. As of 01 February 2019, household estimated price of LPG in Metro Manila ranges from P585.68-P772.68 per 11-kilogram cylinder.

Shown below are the retail prices of 11 Kg. Household LPG
in Metro Manila from January 2018 to February 2019
Year Domestic
Price		 Adjustment/Kg.
Increase (-Decrease)
2018    
January 550.00-777.00 -0.37
February 535.00-760.00 -3.15
March 517.00-742.00 -1.65
April 523.00-723.00 0.25
May 541.00-751.00 1.90
June 582.00-787.00 3.40
July 580.00-800.00 0.90
August 599.00-819.00 1.75
September 591.45-841.45 1.95
October 619.45-869.45 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 585.68-772.68 3.88

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

 

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