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Petron hikes price of LPG in Visayas and Mindanao

11/07/2009

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As a Malacañang order for a moratorium on increases in the prices of petroleum products continues to be enforced in Luzon, including Metro Manila, oil giant Petron Corp. yesterday raised the cost of its liquefied petroleum gas (LPG) by P3.50 per kilogram – in the Visayas and Mindanao.

The price increase was effected 6 a.m. yesterday.

Petron’s public affairs head Virginia Ruivivar cited the rise in world contract prices for November as reason for the domestic increase, which translates to a P38.50 add-on for every 11-kilo cylinder of LPG or cooking gas.

Ruivivar stressed that the increase in the firm’s price for LPG was only being implemented in the Visayas and Mindanao, while the price of its LPG in Luzon will remain the same.

”Retail LPG prices will be unchanged for Luzon while for Visayas and Mindanao, these will increase to reflect change in bulk price,” she said.

Earlier, Malacañang had asked the Department of Trade and Industry (DTI) to verify and investigate the report that the price of LPG was set to increase by P3.50 per kg in the Visayas and Mindanao.

”The DTI has jurisdiction over this issue and it should immediately look into this report. If this report is true, whether (the price increase) is justified or not, it is for the DTI to exercise its powers within the law to protect the interests and the rights of the consumers,” Press Secretary Cerge Remonde had said.

Meanwhile, in adherence to Executive Order 839, the LPG Marketers Association (LPGMA) has vowed not to raise prices, even after two outlets of its member-brands were recently found to have been selling overpriced tanks.

Last Nov. 1, despite the existence of EO 839, two LPG outlets in Quezon City were found to have adjusted their prices, prompting the Department of Justice (DoJ)-Department of Energy (DoE) joint task force assigned to monitor the prices of petroleum products amid the implementation of the EO to raid them.

Upon investigation, the owners of the raided outlets reasoned out that it was actually their distributors which had implemented the price hike and that they were merely abiding by the dictates of the LPG market abroad.

Task force head, Energy Undersecretary Roy Kyamko said appropriate cases will be filed against the two Quezon City outlets.

According to LPGMA president Arnel Ty, world contract prices for cooking gas jumped up $57 per metric ton for November and therefore should have justified a consequent hike in the domestic prices of LPG.

Last month, the prices of LPG was at P610 for an 11-kg tank at Petron, while with those of the brands that belong to the LPGMA, it was at P520 for the same tank size.

EO 839, which was issued out by President Arroyo last Oct. 24 in line with her earlier declaration of a national state of calamity due to the wide devastation wrought by two recent storms on Luzon areas, compelled the oil companies to revert to their Oct. 15 price levels and keep them there until the state of calamity is lifted over the northern region. Pat C. Santos and PNA