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 September, LPG Contract Price has increased by 10.3% or US$46.00 per metric ton to US$494.00/MT, from US$448/MT in August. This would translate to P2.76 per kilogram price adjustment.
Reasons for Price Increase
- Limited supply in Asia.
- Delayed loadings from the US Gulf Coast due to Hurricane Harvey
- Tight spot market in the Middle East
DOMESTIC OIL PRICES
Effective 01 September 2017, most of the oil companies have increased their price by P2.74/kg, resulting to a net increase of P5.68/kg since January of this year.
As of 05 September 2017, price monitoring of LPG household in Metro Manila, ranges from P470.00-720.00. Details of the monitored prices in Metro Manila are posted at the DOE website - Price Watch.
For more information, call the