LPG Price Monitor as of 06 February 2018

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.

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 very small versus the world demand.

For the month of February, LPG Contract Price decreased by US$65/MT to US$511/MT, from US$576/MT a month ago.

International LPG Market Development

  • Global markets for LPG have repeatedly defied expectations about seasonal patterns in supply and demand, reversing the usual script by strengthening in summer and weakening in winter, just when prices are typically at their annual peak.
  • Across the US, Europe and Asia, those patterns have been fueled by low stocks and high prices in the US during the summer months, followed by weak winter heating demand in key consumer markets, and a closed arbitrage from Europe to the US for gasoline. These has undercut demand for butane as a blending component as temperatures dropped.
  • EU demand for LPG fell by nearly 15% in September to November, compared with the same three months the previous year. Stockpiles also rose during that period, according to Joint Organizations Data Initiative (JODI). However, winter demand could still spike this year -- albeit late. Tight supply was seen this week across global propane markets.
  • Forecasts of colder weather across the world in February could also spur more consumer demand (LPG being used as heating fuel). (Source: Platts news)

Domestic Prices      

LPG players implemented a price rollback, starting 01 February 2018, by P3-15 to P3.18 per kilogram (VAT inclusive) or about P35 per 11-kg cylinder.

As of 06 February 2018, household LPG in Metro Manila ranges from P535.00to P760.00 per 11-kilogram cylinder. Most retailers have already implemented the P1.12 excise tax on LPG, per R.A. 10963 or TRAIN.
 

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 11 January 2018

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.

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 very small versus the world demand.

LPG Contract Price remained this month at December 2017 level of US$576.00/MT.

International LPG Market Development

  • Saudi Aramco set its January 2018 Contract Price unchanged from the December CPs;
  • Platts noted that the January CP is in line with trader expectations;
  • 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 of East of Suez.

Domestic Prices      

While there is no movement in the international reference price or LPG Contract Price, the appreciation of peso against the US dollar brought LPG domestic prices slightly lower this month.

Some companies implemented a price rollback of P0.37/kg (VAT inclusive) or P4.07 per 11-kg cylinder while others have not notified yet of their price movement. The said adjustment does not reflect yet the P1.12/kg impact of excise tax per R.A. 10963.

As of 11 January 2018, household LPG in Metro Manila ranges from P550.00-777.30 per 11-kilogram cylinder.
 

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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