Oil firms rolled back the price of liquefied petroleum gas (LPG) by P1 per kilo effective 12:01 a.m. on May 1 to reflect the lower contract price of LPG in the global oil market.
Petron Corp. and Isla LPG, which markets the Solane brand, separately announced the LPG price cut equivalent to P11 per 11-kilo tank.
“Petron will implement a P1.00/kg (VAT-inclusive) rollback in LPG prices effective 12:01 a.m., May 1. This reflects the international contract price of LPG for the month of May,” the country’s biggest oil firm said.
An 11-kilo LPG tank, used primarily by households, sold for between P850 and P1,127 in the National Capital Region in April.
This development followed another big-time oil price hike implemented by oil firms on Tuesday: P1.35 per liter for gasoline, P0.80 per liter for diesel, and P0.70 per liter for kerosene, due to concerns over tightening global oil supply.
Department of Energy Oil Industry Management Bureau (OIMB) Director Rodela Romero attributed the higher pump prices to fresh U.S. sanctions on Iran’s oil shipping network, which are expected to tighten global crude supply, and a sharper-than-expected decline in U.S. crude inventories.
“Final adjustment will be determined after today’s trading and oil companies’ inputs on their related costs,” Romero said.
Jetti Petroleum President Leo Bellas said oil prices continued to rally due to concerns about tightening supply following a fresh round of U.S. sanctions on Iran.
He said easing fears about economic uncertainty in the U.S., the prospects of lowered tariffs on imported Chinese goods, and a drop in U.S. fuel stockpiles have also helped shore up oil prices.
On April 22, oil firms raised the price of gasoline by P1.35 per liter, diesel by P1.30 per liter, and kerosene by P1.10 per liter.
Year-to-date, gasoline has a total net increase of P3.65 per liter, diesel a total net increase of P3.45 per liter, while kerosene has a total net decrease of P0.90 per liter.