Expect reduction in LPG prices starting Feb.

Business.
Business.(Business File photo)

PRICES of liquified petroleum gas (LPG) may go down starting February this year, according to the Liquefied Petroleum Gas Marketers Association (LPGMA) due to weak global demand.

In an interview on Saturday, Jan. 20, 2024, LPGMA Party-list Rep. Arnel Ty, said the reduction in prices may even continue until June.

“The price of LPG is going down. This is based on the forecast and based on what is happening in the world market right now, amid the war that is happening in the Middle East,” said Ty, referring to the conflict between Israel and the Hamas-led Palestinian militant group that has been ongoing since October 2023.

Ty explained that the issue lies in demand and major LPG consumers like China and India have yet to witness a full recovery in their economic activities, leading to low demand in the global market.

“So prices of LPG are declining and expect that (start) of price reduction in February,” he said.

Ty warned that prices may rise again sometime in June or July.

Responsible use of LPG

Ty, also president of Republic Gas Corp. (Regasco), was in Cebu over the weekend to participate in the Sinulog Festival 2024. He banked on Sinulog’s crowd-drawing activities to champion the responsible use of LPG as outlined in Republic Act (RA) 11592, or the LPG Law, through the help of product ambassadors, the cast of TV drama “Batang Quiapo.”

Regasco has been in the industry for 20 years. It has 25 refilling plants in Ilocos, Cagayan Valley, Central Luzon, National Capital Region, Calabarzon and Cebu.

The LPG Law, according to Ty, plays a pivotal role in regulating the LPG industry, ensuring the safety of consumers and the community at large. It establishes comprehensive guidelines for the proper handling, storage and distribution of LPG, creating a framework that actively safeguards against potential hazards.

“The law was enacted in October 2021, but this year marks the second year of the full implementation of the law. So actively, we are supporting the government, and at the same time, one of the things we see as a private sector, to assist the consumer and the government, is to continue the information drive so that everyone, including the LPG dealers, can be helped to comply. Because that is the intention of the law, for everyone in the industry to be able to comply,” Ty said.

Under RA 11592, anyone caught selling without a license will face a penalty of P5,000 per day of operation on the first offense, from the previous fixed amount of P60,000.

Retailers failing to comply with the standards and requirements on safety design, safety practices, LPG, and measuring devices will be fined P300,000 from the previous warning on the first offense and P10,000 on succeeding offenses.

At present, there are over 45,000 LPG dealers across the country, representing more than 30 LPG brands.

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