DEALERS of liquefied petroleum gas (LPG) said shortage in the supply can be expected as prices in the international market is seen to increase by around US$20 to US$30 per metric ton.

Arnel Ty, president of LPG Marketers Association (LPGMA), said there are only two scenarios that consumers could expect with the LPG prices continue to go up, especially with the imposition of Executive Order 839, which put a cap on prices of petroleum products including LPG.

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According to Ty, the first possible scenario if the government will not lift EO 839, big oil companies will likely decide to postpone importation of LPG and this will cause shortage while the second possible reason is the wholesaler will continue to import but will pass on to them the increase.

“If this will happen hindi na lang kami magbebenta dahil hindi naman namin pwedeng ipasa ito sa consumers dahil me existing EO 839,” Ty said.

Patrick Libihoul, president of Liquigaz Inc., in a separate interview said the imposition of EO 839 “is not normal.”

He added that his principals from abroad are coming into the country soon to assess the situation.

“We want to know exactly what is happening. The question has to be answered whether the market is regulated or deregulated,” Libihoul said.

Libihoul also questioned the legality of the issuance of EO 839 since the grounds of the government in declaring the state of national emergency was the typhoons Ondoy and Pepeng.

“It concerns us that the grounds for the EO’s issuance were a national emergency due to the typhoons and this is a country visited by more than 20 typhoons a year,” added Libihoul.

He said at the rate things are going now and the imposition of EO 839 it is obvious that we are now regulated.

Ty meantime said LPG prices are expected to increase by as much as P33 for an 11 kilogram cylinder tank.

Under the Department of Energy's price cap, LPG sold in the country should be within the P520 to P570 per kg range. (MSN/Sunnex)