DOE contradicts forecasts: LPG prices going down
The Philippine Department of Energy has ordered a rollback in LPG prices, contradicting industry forecasts of a price hike. The reduction is attributed to lower freight costs and a favorable peso-dollar exchange rate, despite rising international crude oil prices.
Why it matters
Energy price fluctuations directly impact household budgets and the cost of living for the general population.
MANILA, Philippines - The Department of Energy (DOE) has defied industry forecasts, ordering a rollback in liquefied petroleum gas (LPG) prices this month.
Despite higher international contract prices, consumers can still expect LPG prices to drop by P0.40 per kilo, equivalent to a reduction of P4.40 for a standard 11-kilo cylinder.
The rollback runs counter to earlier industry estimates of an increase of P2 to P3 per kilo.
The DOE said freight costs declined to $94.41 per metric ton from $120.82 per MT, while the average peso-dollar exchange rate also eased to P61.40 from P61.59 month-on-month.
Together, these factors pulled down the overall landed cost of LPG.
"For families who rely on LPG to prepare their meals every day, every peso saved can go toward other household needs. The reduction may be modest, but consumers should benefit whenever market conditions bring costs down," Energy Secretary Sharon Garin said yesterday.
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