LPG shortage to last till March, P5/kg price hike looms
The Liquefied Petroleum Gas Marketing Association on Monday said prices of LPG could go up by P5 per kilogram as suppliers continue to experience tightness in LPG supply.
LPGMA president Arnel Ty said more than 30 percent of small LPG retailers have been severely affected by the LPG shortage. He said 15 metric tons of LPG delivered to Shell and Petron on Sunday would only last for four days.
Ty said the LPG supply shortage could last until March of this year after major LPG suppliers failed to place advance orders for cooking gas from international suppliers.
He also said the LPG shortage has led some suppliers to sell LPG for more than P500 per 11-kg tank.
Liquigaz, the LPGMA's major supplier, adjusted prices by P2 per kilogram last January 17. The company is the main supplier of LPG Marketers Association dealers Pinnacle Gas, Cat Gas, Omni Gas, Nation Gas, and Island Gas.
Last week, the Consumer and Oil Price Watch urged the Department of Trade and Industry to investigate the alleged shortage of supply of LPG in the country. COPW Chairman Raul Concepcion said the DTI must step in following confusing reports on the actual state of supply and the increase in the price of LPG where available,
"Adequate supply of LPG is a basic consumer concern especially among our C,D,E economic classes. The DTI, by authority of RA 7394 or the Consumer Act must step in the determine whether there is in fact a shortage of LPG and why," he said.
He said that in the spirit of transparency and public welfare, COPW is asking that the total capacity of LPG of the various suppliers, Petron, Shell, Liquigaz, Total, Petronas, Pryce Gas be made public.