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 the 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 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 indetermining/monitoring the price adjustments of LPG in the domestic market. Following the timing of the monthly changes in CP, domestic price of LPG also varies every first day of the month and remain constant throughout 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 November 2021, LPG Contract Price has increased by US$45.50/MT to US$ 842.00 /MT, from US$ 796.50/MT last month.
International LPG Market Development
- Saudi Aramco set its November propane Contract Price at $870/mt, up $70/mt from the October CP, and the butane CP at $830/mt, $35/mt above October, the company said Oct. 31.
- This is the sixth-straight monthly rise in the CPs and the highest since the February 2014 propane CP at $970/mt, and since the April 2014 butane CP which w as at $845/mt, S&P Global Platts data showed.
- On LPG supply, Qatar petroleum, ADNOC and Aramco have reportedly announced acceptances of November term cargo nominations without cuts or delays.
- Iran's LPG shipments were expected to reach around 440,000 -450,000 mt in October compared with 556,000 mt exported in September, largely to Asia, and are expected to rebound in November to levels seen in September, provided there are no plant shutdowns, Platts noted.
- North Asian demand for propane is expected to be hea lthy, with Chinese propane dehydrogenation plants having returned from maintenance and started seeking cargoes, and on concerns over an early winter even as LPG stocks in Japan are at the bottom of the five-year range.
o Platts report said that September US imports account for 41% of China's total monthly intake. Lower freight rates coupled with stockpiling requirement for the winter encouraged Chinese buying for LPG cargoes from the US that hit a record high level.
- Japan's total LPG demand rebounded by 16.48% on the month to 813,000 mt in September, following two straight months of decline. But total LPG imports retreated by 10.57% in September after rising for two consecutive months.
- While Japan’s total LPG imports back to a downward track seen over Februar yJune, it was noted in October report that with inventory at the bottom of the five-year range heading into winters and economic recovery from COVID-19, imports are expected to increase this year to levels seen in 2019, at 10.8 million mt/year, up from 9.8 million mt/year in 2020.
Domestic Prices
Oil companies increased the price of LPG effective 01 November 2021 by P2.73 to P3.10/kg or about P30.00 to P34.00 per 11-kg cylinder. Auto LPG likewise increased by P1.70 to P1.73/liter.
As of 01 November 2021, household LPG in Metro Manila are estimated to range from P862.00 to P1,074.00 per 11-kilogram cylinder.
Shown below are the retail prices of 11 Kg. Household LPG |
|||
Year | Domestic Price |
Adjustment/Kg. Increase (-Decrease) |
|
2020 | |||
January | 677.00-829.00 | 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 | 536.00-854.00 | -0.28 | |
July | 560.00-780.00 | 0.50 | |
August | 550.00-780.00 | 0.15 | |
September | 560.00-720.00 | 0.15-0.18 | |
October | 528.00-820.00 | 1.00 | |
November | 539.00-850.00 | 3.20 | |
December | 557.00-860.00 | 0.96 | |
2021 | |||
January | 600.00-905.00 | 4.15-4.20 | |
February | 634.00-937.00 | 2.95-3.00 | |
March | 643.00-946.00 | 0.73-0.82 | |
April | 605.00-784.00 | (3.27) - (3.30) | |
May | 639.00-900.00 | (3.15) - (3.20) | |
June | 600.00-920.00 | 2.18-2.44 | |
July | 655.00-960.00 | 5.19-5.20 | |
August | 710.00-992.00 | 3.27-3.35 | |
September | 780.00-995.00 | 0.64-0.65 | |
October | 832.00-1040.00 | 7.40 | |
November | 862.00-1074.00* | 2.73-3.10 | |
Note: *Prices for November are estimates |
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