The price of cooking gas will go up by P2.35 a kilo, adding P25.85 to the cost of an 11-kilo tank to reflect higher contract prices for liquefied petroleum gas (LPG) in the world market for October.
“Petron will implement a P2.35/kg increase (VAT inclusive) in LPG prices effective 12:01 a.m., October 1,” the company said in its advisory.
Petron also increased the price of its autoLPG by P1.30 per liter.
“These reflect the international contract price of LPG for the month of October,” it said.
Before the increase, LPG sold for P620 to P840 per 11-kilo tank, depending on the brand, location and market forces.
Gasoline and diesel prices, meanwhile, are also expected to go up sharply on Tuesday.
“Expect fuel prices to go up again next week. Diesel should go up by P1.30 to P1.40 per liter while gasoline should increase by
P0.80 to P0.90 per liter,” Unioil Philippines said in its price forecast advisory.
The impending increase would be the seventh in as many weeks.
World oil prices have been reacting to the US sanctions against Iran, which could trigger a tightness in oil supply.
The US is expected to launch its sanctions against Iran starting Nov. 4 and this has caused uncertainties in the global supply of oil.
On Sept. 25, the oil firms raised the price of gasoline by P0.40 per liter, diesel by P0.20 per liter and kerosene by P0.15 per liter amid tight supply coupled with robust demand from Indonesia and the Persian Gulf on the back of reduced Chinese exports; refinery turnarounds and multiple refinery problems in the US midwest.
Diesel also experienced limited supply as demand continued to rise, especially in Malaysia and Australia, while Japanese refiners saw a decrease in production.
Prices was also influenced by anticipation over the meeting of the Organization of Petroleum Exporting Countries and non-OPEC major oil producers in Algeria next month to discuss scenarios for oil output.
According to data from the Department of Energy, year-to-date total adjustments stand at a net increase of P9.40 per liter for gasoline, P9.35 per liter for diesel and P8.25 per liter for kerosene.
Data also showed that gasoline currently ranges from P51.55 to P65.35 per liter, diesel sells from P44.30 to P53.55 per liter while kerosene is sold from P48.72 to P58.85 per liter.
Meanwhile, Senator Sherwin Gatchalian slammed the move of the National Food Authority (NFA) to charge retailers P115,000 to sell its rice, and urged the agency to scrap the high fee.
“This is an ill-conceived move of the NFA. I thought they wanted to increase the number of those selling rice,” said Gatchalian.
He added that if the NFA needed help, it should not charge such a high fee.
The Philippine Amalgamated Supermarkets Association (Pagasa), Inc. recently revealed that the NFA is charging retailers who want to sell NFA rice ₱115,000. They are also expected to have a paid-up captial of P10 million.
It was the government which sought the help of Pagasa, Inc. to help flood the market with affordable rice.
“If you are the owner of a supermarket, will you still pay this fee if in the first place you are not required to sell NFA rice?” Gatchalian said.
“This is yet another reason why the NFA should be abolished,” he said in a mix of English and Filipino. “All they are giving Filipinos is a headache.”
Pagasa Inc. had previously agreed to have its members sell NFA rice, based on a memorandum of agreement (MOA) signed last week. It has some 200 stores across the country that would have given poor Filipinos better access to the staple food.
The group, however, that the high fee makes it impossible for its members to help solve the rice issue.