(Taguig City). Amidst the increase of liquefied petroleum gas (LPG) prices, the Department of Energy (DOE) today assured that it is closely monitoring the local LPG market to make sure that only reasonably priced LPG products are being sold to consumers.
Energy Secretary Alfonso G. Cusi reported: “Our Oil Industry Management Bureau (OIMB) is closely assessing the global trend of supply and demand, while also taking into consideration other factors affecting the prices of LPG.”
"The DOE-OIMB reported that the root cause of the LPG price hike this month was due to the increased demand by the cold weather continents such as North America, Europe and even Northern Asia," Sec. Cusi explained.
Moreover Cusi added, "LPG is primarily being used as a heating fuel in these regions, especially with the extended cold weather or winter attributed to La Niña."
Sec. Cusi clarified, “Large consuming countries are having a hard time getting their supply because even the transportation of these LPG products, mostly through railway, is also affected by the cold weather. This curbs supply, then affects the demand, and ultimately the prices.”
"The DOE-OIMB report also cites the rising global crude oil prices and outages of oil refineries in some oil-producing countries as additional factors for the rising prices of LPG."
Sec. Cusi informed, “LPG is a by-product of crude oil and natural gas production. And with the global crude oil prices going up due also to the higher demand and curbed supply production from the OPEC, any by-product would also increase.”
“Since more than 90% of our LPG supply is imported, we must ensure that LPG products sold in the local market are reasonably priced, according to what actually is transpiring in the global market. This is how the government can protect consumers from these price volatilities,” Cusi said.
“We are being more thorough in monitoring the local market because some LPG traders might take advantage of this international market scenario to the detriment of the public. We don’t want that to happen.”
The DOE is also campaigning on the demand-side management of proper LPG use such as cooking with the appropriate size of pans, setting to low fire or turning off the stove when the water is already boiling and ensuring the integrity of the hose of the LPG to avoid leakage.
Lastly, Sec. Cusi advised, “Apart from prices, I encourage the public to be more vigilant in ascertaining that the LPG cylinder that they are buying has the right weight, 11 kilograms, which is the common volume for a household LPG cylinder."
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