Solon: LPG price hike looming
Liquefied Petroleum Gas Marketers' Association (LPGMA) party-list Representative Arnel Ty warned of a looming LPG price hike of P2/kilogram or more amid soaring prices in the international market.
Ty said that from a low of $450/MT contract price in January, prices have gone up steadily. "It's around 40 dollars 'yung tinaas ng international market price, from $617 per metric ton to $657 per metric ton 'yung ginalaw ng international market price...so that will translate to around two pesos or more because of 'yung ating dollar conversion," he said.The Department of Energy confirmed a likely upward adjustment in LPG prices, but disputed that the increase could reach P2/kg.
"Under the law hindi po namin puede idikta [ang LPG prices] kasi nga deregulated industry, pero pwede namin tingnan kung makatarungan or kung tama 'yung plano nilang itaas," said Energy Assistant Secretary Bodie Pulido.
"Pero doon po sa projections na nakita namin hindi po siya aabot ng dalawang piso," he added.
Pulido added that as LPG is a byproduct of crude oil, it follows the movement of international oil prices. "Based on several indexes that we follow there really is a trend for prices to go up. Aakyat po talaga 'yung presyo ng petroleum products dahil lahat po 'yan ay derivatives lamang ng crude oil," he said.
Geopolitics situation and major suppliers' issues have been pushing prices higher, with Iran facing US sanctions and Venezuela an economic crisis. Meanwhile, a meeting between OPEC and non-OPEC countries recently has yet to result in a reassuring supply commitment.
"Wala pong lumabas na statement mula sa kanilang representatives regarding sa pag-assure ng supply," said Pulido.
"Right now, medyo may effect po 'yung sanctions ng US against Iran at 'yung problema po ng gobyerno ng Venezuela, so 'yung supply po ng world market apektado po," he added.
Ty said it high time for lawmakers to consider suspending the excise tax on oil.
"For gasoline I think it's about time kasi this breaks the $60 per barrel barrier, e nasa batas eh. Now for the LPG naman, once it hits the $800 per metric ton barrier, ito tingin ko kailangan na i-suspend 'yan," he said.
(GMA News Online)