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 February 2020, LPG Contract Price has decreased by US$ 49.50/MT to US$ 533.00/MT, from US$ 582.50/MT last month.
International LPG Market Development
- The propane and butane CPs fell for the first time in February after four months of increases.
- Asian LPG market participants has expected that Saudi Aramco's February contract prices for propane and butane to be lower for the first time in four months, as markets remain cautious about the possibility of the resumption of US LPG cargoes into China following the signing of the phase one trade deal between the two countries in January.
- Hence, the rollback reflects to the signed trade deal on the resumption of US LPG cargoes to China.
- In addition, Goldman Sachs reported that the outbreak of a coronavirus in China that is now an international threat could cut oil demand by 260,000 bpd, which would translate into a price drop of almost $3 per barrel. The investment bank analysts further noted that most of the demand loss will come from jet fuel as the risk of disease discourages travelers from getting on a plane.
- The adjustment thus reflects the movement in the international Contract Price of LPG for the month of February.
Domestic Prices
Oil companies decreased the price of LPG effective 01 February 2020 by P2.20/kg or about P24.20/11-kg cylinder. Auto LPG likewise decreased by P1.25/liter.
As of 01 February, household LPG in Metro Manila ranges from P652.85-P804.49 per 11-kilogram cylinder.
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Shown below are the retail prices of 11 Kg. Household LPG |
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| 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 | 677.05-828.69 | 7.55 |
| February * | 652.85-804.49 | -2.20 |
| * Tentative Domestic Price (Prices will be replaced upon completion of actual price monitoring) | ||
For more information, call the Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: www.doe.gov.ph