The country’s oil firms implemented a price rollback for liquefied petroleum gas (LPG) by P0.90 to P0.91 per kilo effective January 1, 2025 to reflect the lower contract price of LPG in the world market.
This translates to a rollback of P9.90 toP10.01 per 11-kilo tank used primarily by households.
“Petron will implement a P0.90 per kg (VAT-inclusive) rollback in LPG prices effective 12:01 AM Jan 1. This reflects the international contract price of LPG for the month of January,” Petron Corp. said in its advisory.
Solane LPG said it will also cut the price of its LPG by P0.91 per kilo VAT inclusive.
LPG sells from P860 to P1,140 per 11-kilo tank in November.
This developed as the oil firms cut the price of kerosene by P0.90 per liter, and diesel and gasoline by P0.30 per liter on Tuesday.
Department of Energy Oil Industry Management Bureau (OIMB) director Rodela Romero said last week the anticipated price rollback was “triggered by the International Energy Agency’s continued expectation of an oversupplied oil market in 2025.”
Jetti Petroleum president Leo Bellas said oil prices fell on worries about demand growth and supply surplus in 2025.
Bellas said the US Federal Reserve’s cautious stance in cutting interest rates in 2025 also weighed on oil prices due to concerns that weak economic activity in the US could slow demand next year.
“However, outlook of slightly tightening supplies in the short-term limited losses. Anticipated decline in US crude inventories and hopes for additional fiscal stimulus in China also provided support to prices,” the oil executive noted.
“Further upside prices was limited by still-high regional stockpiles of gasoline and diesel, despite a pullback in supply resulting from a significant drop in exports from China and limited outflows from India and South Korea,” Bellas added.
On Dec. 24, the oil companies implemented an increase on the price of petroleum products.
Gasoline increased by P0.50 per liter, diesel by P1.45 per liter and kerosene by P0.75 per liter.
Year-to-date, total adjustment of gasoline and diesel stands at a net increase of P13.05 per liter and P11.30 per liter, respectively.
On the other hand, kerosene has a total net decrease of P1.80 per liter.
