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.
Aramco's CPs, which set the price of LPG lifted from the Saudi ports of Yanbu, Ras Tanura and Ju'aymah under term supply contracts, are closely watched by the market as they tend to set a base level for LPG pricing for most markets East of Suez.
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 through out the whole month.
Like all other petroleum products, the Philippines has no influence over the LPG CP as the country’s domestic requirement is small versus the world demand.
For the month of July 2020, LPG Contract Price has decreased by US$ 10.00/MT to US$ 346.00/MT, from US$ 3360.00/MT last month.
International LPG Market Development
- The LPG CP is slightly up this month from June CP on sustained moderate demand from the largest LPG consumers - India and Indonesia, and despite China's gradual return from lockdown measures. Ample supply from the US and Middle East also helped to stabilize prices.
- Global LPG export growth is estimated to slow to 3.2% in 2020 at 112 million mt, after recording around 14% annual growth in 2019, Platts stated the report by FearnResearch.
- Exports from the US and Canada, the largest growth region, are expected to increase 12-13% year on year or 5 million mt, to around 44 million mt in 2020, from 6.3 million mt, or about 16% growth in 2019.
- Total LPG global exports in 2020 is accounted by the US at 41%, and the Middle East region at 35%. Though exports from the Middle East are expected to be flat this year at 40 million mt, led by the UAE and Qatar, each at around 11 million mt.
- West Africa is expected to see a 14% year -on-year export growth in 2020. The report noted that the growth figures could be revised later if the COVID-19 pandemic creates unprecedented LPG demand shocks.
- US LPG exports to Asia is estimated to fall to around 2 million mt in July, down from a high of around 2.8 million mt in June, but still higher than the monthly average shipments of around 1.7 million mt in 2019.
Domestic Prices
Oil companies increased the price of LPG effective 01 July 2020 by P0.50/kg or about P5.55/11-kg
cylinder. Auto LPG likewise increased by P0.30/liter.
As of 01 July 2020, household LPG in Metro Manila ranges from P539.00-857.00 per 11-kilogram
cylinder.
|
Shown below are the retail prices of 11 Kg. Household LPG |
||
| Year | Domestic Price |
Adjustment/Kg. Increase (-Decrease) |
| 2019 | ||
| January | 543.00-730.00 | 0.00 |
| February | 576.00-755.00 | 3.88 |
| March | 608.00-785.00 | 2.90 |
| April | 615.60-800.00 | 1.25 |
| May | 615.60-798.00 | -0.20 |
| June | 589.00-750.00 | -6.25 |
| July | 550.00-695.00 | -3.36-3.40 |
| August | 550.00-695.00 | 0.00 |
| September | 550.00-695.00 | 0.00 |
| October | 575.00-737.00 | 4.50 |
| November | 594.00-795.00 | 0.30 |
| December | 594.00-745.64 | 0.25 |
| 2020 | ||
| January | 677.05-828.00 | 7.55 |
| February | 655.00-778.00 | -2.20 |
| March | 611.00-795.00 | -3.90 |
| April | 501.00-770.00 | -9.60 to -10.70 |
| May | 536.00-854.00 | 5.80 |
| June | 533.00-851.00 | -0.28 |
| July | 538.50-856.50 | 0.50 |
| Note: Prices for July are estimates | ||
For more information, call the Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: [email protected]
Website: www.doe.gov.ph