LPG Price Monitor as of 01 November 2017


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 November, LPG Contract Price remained at US$578.00/MT, the same with LPG CP in October.  However, peso depreciation against the US dollar may still drive domestic prices higher this month, estimated at about P0.26/kg.  This would translate to an estimated increase of nearly P3.00 per 11-kilogram cylinder.

International LPG Market Development

  • US LPG cargo lifting program to Asia for November is expected to remain the same as October or even more on positive arbitrage economics;
  • Asia is expected to be well supplied until the end of 2017 to meet winter heating demand in Japan, China and South Korea;
  • Asia is also getting its usual two monthly cargoes from Nigeria in November, which together with the ample supply from the US could help meet the rising demand and fill the spot supply shortfall from major Middle Eastern producers.

Domestic Prices      

Effective 01 November 2017, LPG companies implemented a P0.30/kg increase or P3.30/11-kilogram cylinders. Total adjustment for the year is now at net increase of P10.88/kg.

Following said adjustment, price monitoring of household LPG in Metro Manila ranges from P538.00-778.00 per 11-kilogram cylinder.  Details of the monitored prices in Metro Manila are posted at the Price Watch of the DOE website.

 

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

 

Oil Monitor as of 01 November 2017


WORLD OIL PRICES (October 23-27 trading days)  

Dubai crude increased week-on-week by about US$0.40 per barrel.  Similarly, both MOPS gasoline and diesel increased by almost US$0.30 per barrel.

Reasons for the Adjustment

  • Crude prices seesawed over the week on mixed signals affecting the world oil market:

    • ​Possible disruption of supply from Kurdistan Region amid conflicts the Iraq government

    • Decline in U.S. drilling rigs for the third week in a row

    • Steady climb of US crude output, apart from temporary downturns since late August following hurricanes Harvey and Nate; both storms caused production offline recently in the Gulf of Mexico, when offshore operators evacuated personnel as a precaution before Nate struck

    • Oil market focused more on comments from Saudi Arabia about ending a global supply glut rather than on reports of unexpected increase in U.S. crude inventories and high U.S. production and exports.

    • Steadily increasing demand for crude oil in Asia, mainly in China (average of 8.5 million bpd between January and September) and India

    • Three main factors that are driving China’s unappeasable appetite for crude: declining domestic production, increased access to imports and exports for independent refiners, and building up the strategic petroleum reserve

  • Asian gasoline market remained strong amid high demand in Southeast Asia and healthy demand from the Middle East amid a heavy refinery turnaround season.

  • Asian gasoil/diesel market have growing supply while demand remained relatively stable; India gasoil demand is anticipated to continue rising as the end of the monsoon season spurs demand from the agriculture, industrial and construction sectors.

FOREX: Philippine peso depreciated against the US dollar by P0.24 to P51.66, from P51.41 in preceding week. 

Other recommended reference sites:

 

DOMESTIC OIL PRICES      

Effective 31 October 2017, the oil companies effected a P0.25/liter increase in gasoline and diesel, and P0.45/liter in kerosene.

Year-to-date total adjustment stands now at P4.49 for gasoline and P4.60 for diesel.

 

As monitored, shown below are the retail prices in Metro Manila beginning October 31, 2017.

Products Price Range Common Price
P/liter
Diesel 30.65-39.35 34.90
Gasoline* 41.65-51.75 47.20
LPG, P/11-kg cylinders 538.00-778.00  

* RON 95

 

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: https://www.doe.gov.ph

 

Oil Monitor as of 25 October 2017


WORLD OIL PRICES (October 16-20 trading days)

Dubai crude increased week-on-week by more than a dollar per barrel. MOPS gasoline and diesel increased as well by about US$1.70 and US$0.90 per barrel, respectively.

Reasons for the Adjustment

  • Escalating tensions in the Middle East - Oil hit January high level after the Iraqi government forces seized Kurdish oil fields after Kurds closed two production areas, raising fears of supply outages. Crude further edged up Friday, on signs of a tightening market.
  • U.S. & Iran tensions added an upward pressure on crude prices over President Trump’s decision to decertify the Iran nuclear deal. This raised concerns over potential renewed US sanctions against Iran.
  • Less compliance among members of the OPEC deal to curb output.
  • Gasoline fundamentals were firm on steady supply and robust demand supporting the Asian market. Demand for gasoline remained strong particularly from in Indonesia, the Middle East, India and Sri Lanka.
  • Gasoil market sentiment remained steady to weaker underpinned by relatively tight spot availability of medium sulphur gasoil.
  • Rising inventories of petrol and diesel in the US, reviving concerns about elevated stockpiles during a time of slower demand.
  • Russian oil company-Rosneft stressed that U.S. shale oil production somehow threatens OPEC intention to drain the world oil surplus.

FOREX: Philippine peso depreciated against the US dollar by P0.05 to P51.41, from P51.36 in preceding week.

Other recommended reference sites: 


DOMESTIC OIL PRICES  

Effective 24 October 2017, oil companies implemented a per liter increase of P0.65 for gasoline P0.35 for diesel and P0.55 for kerosene.

Year-to-date total adjustments are P4.24 in gasoline and P4.35 in diesel. LPG remained having net increase of P10.58/kg.

As monitored, shown below are the retail prices in Metro Manila beginning October 24, 2017.

Products Price Range Common Price
P/liter
Diesel 30.40-39.10 34.65
Gasoline* 41.40-51.50 46.95
LPG, P/11-kg cylinders 535.00-775.00  

* RON 95

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: https://www.doe.gov.ph

Oil Monitor as of 18 October 2017


WORLD OIL PRICES (October 09-13 trading days)  

Dubai crude decreased week-on-week by US$0.03/bbl. MOPS diesel also increased by about US$0.40/bbl contrary to gasoline that increased by US$0.15/bbl.

Reasons for the Adjustment

  • Crude demand in the region was largely met by supply.
  • Asian gasoline market remained steady and will likely minimize the usual fourth quarter price downtrend due to an anticipated supply squeeze from China and relatively strong demand in the region.
  • Demand for medium sulfur gasoil cargoes was starting to regain traction, providing some support to sentiment. Also, refining in the US was heard to be ramping up after recent disruptions due to hurricanes, easing supply concerns.
  • OPEC Secretary General Mohammad Barkindo stressed that efforts is underway to rebalance the global oil market. OPEC and non-member state producers started cutting crude oil production in January in an effort to draw the five-year average for global crude oil inventories back to even after years of chronic oversupply.
  • OPEC analysts are confident of their oil market rebalancing efforts, raising their forecasts for 2017 and 2018 global demand, while lowering projections for supply.

FOREX: Philippine peso depreciated against the US dollar by P0.30 to P51.36, from P51.06 in preceding week.

Other recommended reference sites: 


DOMESTIC OIL PRICES  

Effective 17 October 2017, oil companies implemented an increase of P0.20/liter for gasoline and a decrease of P0.40/liter for diesel.

Year-to-date total adjustments are at net increase P3.59 in gasoline and P4.00 in diesel. LPG remained having a net increase of P10.58/kg.

As monitored, shown below are the retail prices in Metro Manila beginning October 17, 2017.

Products Price Range Common Price
P/liter
Diesel 30.05-38.75 34.30
Gasoline* 40.75-50.85 46.30
LPG, P/11-kg cylinders 535.00-775.00  

* RON 95

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: https://www.doe.gov.ph

Oil Monitor as of 10 October 2017


WORLD OIL PRICES (October 02-06 trading days)  

Dubai crude decreased week-on-week by about US$0.80/bbl. MOPS gasoline and diesel also decreased by about US$1.90 and US$1.50 per barrel.

Reasons for the Adjustment

  • U.S. oil drilling and OPEC output increased. U.S. drillers added six oil rigs bringing total count of 750.
  • EIA report confirms analyst expectation of a modest build in the country’s gasoline stocks.
  • Positive sentiment for the Asian gasoline market due to small demand in the Middle East that continued to attract supply from
    the region. Asian gasoline spot market was marginally tighter but still, overall, on a downward trend.
  • US crude went below the $50 level, as the US dollar rose amid concerns of an oversupply. Higher dollar makes oil expensive for
    other currency holder, thus, capped the downward impact of oil prices on domestic market.

FOREX: Philippine peso depreciated against the US dollar by P0.19 to P51.16, from P50.87 in preceding week.

Other recommended reference sites: 


DOMESTIC OIL PRICES      

Effective 09 October 2017, oil companies implemented a per liter decrease of P0.50 for gasoline P0.40 for diesel and P0.85 for kerosene.

Year-to-date total adjustments are P3.39 in gasoline and P4.00 in diesel. LPG remained having net increase of P5.68/kg.

As monitored, shown below are the retail prices in Metro Manila beginning October 10, 2017.

Products Price Range Common Price
P/liter
Diesel 31.15-36.00 34.30
Gasoline* 40.55-50.55 46.85
LPG, P/11-kg cylinders 535.00-775.00  

* RON 95

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: https://www.doe.gov.ph

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