LPG Monitor as of 01 May 2025

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.

Saudi Aramco's CPs, which set the price of propane and butane lifted from the Saudi Arabian 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 of Suez.

The DOE refers to the LPG/Saudi CP and monthly average forex in estimating the price adjustments of LPG in the domestic market. Following the timing of the monthly changes in CP, domestic price of LPG also changes every first day of the month and remain constant until the next adjustment in the succeeding month.

Like all other oil products, the Philippines has no influence over the LPG CP as the country’s domestic requirement is insignificant versus the world demand.

The LPG Contract Price for April is at US596.00/MT, and lower by US$12.50/MT (2%) compared to the same month last year at US$583.50/MT.

 

International LPG Market Development

Market News reports cited the following bearish factors behind the decrease of the month’s LPG Contract Price:

  • Saudi Aramco set its May term contract prices for propane at $610/mt and butane at $590/mt, the company said April 29, down from its April CP that was set at $615/mt for propane and $605/mt for butane.
  • The Asian LPG was expected to remain rangebound with improving demand supported by the petrochemical sector.  LPG productions are poised for growth, driven by demand from new crackers and PDH plants in China.
  • In second quarter 2025, the demand for petrochemical feedstocks is anticipated to lead the growth in Asian refined product demand, with an increase of 213,000 b/d for combined LPG and naphtha as new crackers and propane dehydrogenation (PDH) plants commence operations in China.
  • China, which was the single-largest contributor to demand growth until last month’s outlook, is anticipated to lose share as trade uncertainties cloud its economic outlook, with a significant impact expected on export-oriented manufacturing units. The refined products demand growth outlook for China has been revised down by 174,000 b/d in the second quarter of 2025, with most impact felt on LPG as it shuts imports from the US.
  • The current global tariff tangle is creating a trade opportunity for Western Canadian producers to export LPG incrementally to Asia, even as demand for propane and butane in Asia is set to grow 30% from current levels, AltaGas CEO Vern Yu said May 1 in a webcast to discuss the company's first-quarter 2025 earnings.

 

Domestic Prices      

Starting 01 May 2025, the oil companies implemented a decrease of P1.00 per kilogram in household LPG or P11.00 per 11-kg cylinder.  The prices of 11-kg cylinder are estimated to range from P839.00 to P1,116.00 per 11-kilogram cylinder. 

Auto LPG likewise decreased by P0.66/liter.  The price of Auto-LPG is estimated at P42.10 per liter.

 

For more information, call the Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Website: www.doe.gov.ph

LPG Monitor as of 01 April 2025

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.

Saudi Aramco's CPs, which set the price of propane and butane lifted from the Saudi Arabian 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 of Suez.

The DOE refers to the LPG/Saudi CP and monthly average forex in estimating the price adjustments of LPG in the domestic market. Following the timing of the monthly changes in CP, domestic price of LPG also changes every first day of the month and remain constant until the next adjustment in the succeeding month.

Like all other oil products, the Philippines has no influence over the LPG CP as the country’s domestic requirement is insignificant versus the world demand.

The LPG Contract Price for April is unchanged from the previous month at US608.00/MT, and lower by US$10.50/MT (2%) compared to the same month last year at US$618.50/MT.

 

International LPG Market Development

Market News reports cited the following bearish factors behind the decrease of the month’s LPG Contract Price:

  • Saudi Aramco set its term contract prices for April at $615/mt for propane and at $605/mt for butane, both unchanged from March’s CPs, the company said in a statement released March 27. 
  • The Asian LPG was expected to remain rangebound with improving demand supported by the petrochemical sector. 
  • While Saudi Aramco has reduced the operational tolerance for term LPG cargoes to minus 10%-0% for April loadings from minus 10% to 10% for March, market participants, are confident that LPG supply in the Middle East remains healthy.
  • Moreover, OPEC+ plans to unwind crude oil production cuts starting in April, which could slightly increase in LPG supply from the likes of Saudi Arabia, UAE and Kuwait. S&P Global Commodity Insights analysts estimate that for every 1 million b/d increase in oil production in the Middle East, the corresponding LPG increment would be around 5,000 mt/day.
  • Strengthening US LPG prices had weakened arbitrage economics to Northwest Europe and tightened supply.  In the Mediterranean, arbitrage economics continued to show some strength, as seasonal demand for LPG and a lower-than-usual supply elevated the flow of US cargoes.

 

Domestic Prices      

Starting 01 April 2025, the oil companies implemented a decrease of P0.25 to P0.27 per kilogram in household LPG or P2.75 to P2.97 per 11-kg cylinder.  The prices of 11-kg cylinder are estimated to range from P857.25 to P1,127.25 per 11-kilogram cylinder. 

 

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Auto LPG likewise decreased by P0.26/liter.  The price of Auto-LPG is estimated at P42.09 per liter.

 

For more information, call the Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Website: www.doe.gov.ph

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