LPG Price Monitor as of 02 October 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 the month of October, LPG Contract Price has increased by 17.11% or US$46.00 per metric ton to US$578.50/MT, from US$494/MT in September.  This would translate to an estimated increase in LPG domestic price of P4.87/kg or P53.60/11 kilograms cylinder.

Reasons for Price Increase

  • Bullish market underpinned by a strong US market, amid higher exports.
  • Stronger crude oil prices have further strengthened LPG prices.
  • Prices of both propane and butane have risen to multi-year highs in the third quarter, largely driven by reduced supply due to a closed arbitrage1 from the US and maintenance across Northwest Europe.
  • The CFR Japan propane price rose $23 day on day to $563/mt at the Asian close Thursday, the highest in 34 months, following supply disruptions from the US Gulf Coast following Hurricane Harvey and a tight Middle East spot market due to increased demand from Indian and Chinese buyers.

DOMESTIC OIL PRICES      

Effective 01 October 2017, LPG companies implemented a P4.90/kg increase.  This price adjustment resulted to a net increase of P10.58/kg since January 2017 to present.

As of 02 October 2017, price monitoring of household LPG in Metro Manila, ranges from P523.90-773.90.  Details of the monitored prices in Metro Manila are also posted at DOE website - Price Watch.

1 The simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms in order to take advantage of differing prices for the same asset.


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 27 September 2017


WORLD OIL PRICES (September 18-22 trading days)  

Dubai crude increased week-on-week by almost US$1.50/bbl. MOPS diesel also increased by US$1.10/bbl contrary to gasoline that decreased by about US$0.15/bbl.

Reasons for the Adjustment

  • The Asian gasoline market fundamentals were balanced, with demand and supply seen to be steady. The market is currently deriving some support from the ongoing good demand from the Middle East and from some recently added capacities.
  • Fundamentals in the Asian gasoil market remained strong on rising regional demand. Demand from the fishing sector is expected to rise with the lifting of the seasonal fishing ban in the China seas.
  • Tighter supply due to strong buying interest in recent weeks has helped support the Asian gasoil market. An open arbitrage from Asia and the Middle East to west of Suez has led to a further draw on stocks.
  • US shale oil production will continue to grow in October, but should be only about 79,000 b/d -- down 32% from its projected growth for September -- according to figures released by the US Energy Information Administration.
  • Iraq oil minister Jabbar al-Luaibi said that OPEC and non-OPEC ministers are considering various options to extend their crude oil output cut deal, which is due to end in March, including proposals for the cut to run through 2018, as well as a further 1% increase in cuts.
  • Russian energy minister Alexander Novak noted that a monitoring committee will meet today in Vienna to discuss how to implement an export tracking mechanism, which in a way can bolster market confidence in the production cut agreement.

FOREX: Philippine peso appreciated against the US dollar by P0.05 to P51.01, from P51.06 in preceding week.

Other recommended reference sites: 


DOMESTIC OIL PRICES      

Effective 26 September 2017, most oil companies effected an increase of P0.45 for diesel and P0.65 for kerosene. There was no adjustment for gasoline.

Year-to-date, gasoline and diesel have respective net increase of P3.64 and P3.85 per liter. LPG remained with net increase of P5.68/kg.

As monitored, shown below are the retail prices in Metro Manila beginning September

Products Price Range Common Price
P/liter
Diesel 29.85-35.85 34.15
Gasoline* 40.80-50.99 47.10
LPG, P/11-kg cylinders 470.00-720.00  

* 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 20 September 2017


WORLD OIL PRICES (September 11-15 trading days)  

Dubai crude increased week-on-week by more than US$0.80/bbl. On the contrary, MOPS gasoline and diesel both decreased by about US$0.15/bbl.

Reasons for the Adjustment

  • Oil prices dropped Monday on concerns that hurricane Irma can effect a dent in US oil demand.
  • Asian gasoline market continued to soften with future spreads and cracks on a downtrend. Weekly US EIA data released showed that stocks of US gasoline stocks fell due to problematic weather in the US and Mexico.
  • Gasoil stocks in the West, Amsterdam-Rotterdam-Antwerp hub dropped by 3.9% in the week ended Wednesday, following disruptions to US Gulf Coast refining.
  • Asian gasoil market lifted Thursday, driven by arbitrage opening to move surplus barrels from Asia and the Middle East to West of Suez, coupled with robust demand.
  • The uptrend is also due to large drawdown of barrels from the Middle East moving to Europe to backfill inventories following healthy flows of European gasoil barrels to the US in response to shortages in the wake of hurricanerelated refinery and port disruptions.
  • Regional gasoil demand from the downstream agriculture and industrial sectors was expected to increase following the end of the rainy season. Requirements from the fishing sector were also expected to rise with the lifting of the seasonal fishing ban in the China Seas.
  • By Friday, sentiments remained strong amid high regional demand

FOREX: Philippine peso depreciated against the US dollar by P0.02 to P51.06, from P51.04 in preceding week.

Other recommended reference sites: 


DOMESTIC OIL PRICES      

There was no movement in the price of petroleum products this the week.

Year-to-date adjustments of gasoline and diesel remained at net increase of P3.64/liter and P3.40/liter, respectively. LPG has a net increase of P5.68/kg.

As monitored, shown below are the retail prices in Metro Manila beginning 19 September 2017.

Products Price Range Common Price
P/liter
Diesel 29.40-35.40 33.70
Gasoline* 40.80-50.99 47.10
LPG, P/11-kg cylinders 470.00-720.00  

* 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

LPG Price Monitor as of 07 September 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 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

 

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 07 September 2017


WORLD OIL PRICES (August 28 - September 01, 2017)  

Dubai crude has decreased week-on-week by more than US$ 0.40/bbl. MOPS gasoline, kerosene and diesel all have increased by over US$ 1.00 per barrel.  Gasoline futures surged more than 13 per cent on Thursday  as almost a quarter of US refining capacity remained offline.

Reasons for the Adjustment

  • Crude oil prices rose during the trading week, contrary to the expectations of the OPEC-member countries, as oil traders focused more on Hurricane Harvey’s hit on oil demand than the impact on supply disruptions.
  • Reuters reported of spreading concerns over falling demand in the world’s top oil consuming country after tropical storm Harvey knocked out almost a quarter of the refineries in Texas.
  • Hurricane Harvey brought record flooding to the U.S. oil heartland of Texas and has paralyzed at least 4.4 million barrels per day (mbpd) of refining capacity.
  • Analysts called the status of US refineries a key to oil prices, i.e.:
    • Bank of America Merrill Lynch: “The disruptions in recent days may delay the ongoing global crude oil rebalancing process”
    • Goldman Sachs and Stifel: US outages would probably last several months; others said higher gasoline prices might prompt operational refineries to delay typical September seasonal maintenance.

Overall, shrinking crude stocks and expectations for rising growth in global demand meant analysts in a monthly Reuters poll raised their oil price forecasts for the first time in six months.

FOREX: Week-on-week value of Peso appreciated against the US dollar by P0.02 to P51.17 from P51.18 in the preceding week.

Other recommended reference sites: 

 


 

DOMESTIC OIL PRICES      

Effective 05 September 2017, most of the oil companies have increased their prices by P0.40 both for gasoline and diesel.  Price of kerosene also increased by P0.50/liter.

Year-to-date total adjustments stand at a net increase of P3.19/liter in gasoline and P2.10/liter in diesel.

As monitored, shown below are the retail prices in Metro Manila beginning 05 September 2017.

Products Price Range Common Price
P/liter
Diesel 28.75-33.46 33.15
Gasoline* 40.35-50.35 46.65
LPG, P/11-kg cylinders 470.00-720.00  

* 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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