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, LPG Contract Price has increased by US$38.00/MT to US$ 461.00/MT, from US$ 423.00/MT last month.
International LPG Market Development Positions
- The February propane and butane CPs are within the higher range of traders' expectations.
- The February propane CP bucked the decline seen since the November CP.
- Volumes from major Middle East producers such as Aramco, Qatar and Kuwait have been sufficient to fill Chinese demand caused by a gap in US supply following higher import tariffs, this was countered by the sharp fall in November-lifting shipments from Iran after recent US sanctions.
- The increase reflects the movement in the international market of contract price.
Domestic Prices
Oil companies have increased the price of LPG effective 01 February 2019 by P3.88/kg or about P42.68/11-kg cylinder. Auto LPG likewise increased by P2.17/liter. As of 01 February 2019, household estimated price of LPG in Metro Manila ranges from P585.68-P772.68 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) |
| 2018 | ||
| January | 550.00-777.00 | -0.37 |
| February | 535.00-760.00 | -3.15 |
| March | 517.00-742.00 | -1.65 |
| April | 523.00-723.00 | 0.25 |
| May | 541.00-751.00 | 1.90 |
| June | 582.00-787.00 | 3.40 |
| July | 580.00-800.00 | 0.90 |
| August | 599.00-819.00 | 1.75 |
| September | 591.45-841.45 | 1.95 |
| October | 619.45-869.45 | 2.35 |
| November | 613.00-785.00 | -7.50 |
| December | 542.60-714.60 | -6.40 |
| 2019 | ||
| January | 543.00-730.00 | 0.00 |
| February | 585.68-772.68 | 3.88 |
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