MANILA, Philippines—Here’s good news for households struggling to make ends meet amid the rising cost of living.

Following the lead that cooking gas dealers set last weekend, the country’s major oil firms slashed the price of their liquefied petroleum gas (LPG) also by P4 a kilogram.

Pilipinas Shell Petroleum Corp., Petron Corp. and Total (Philippines) Corp. implemented the price reduction at 12:01 a.m. Tuesday.

Petron also cut the price of its autoLPG (LPG for cars) by P2.50 a liter, 12 hours behind Eastern Petroleum Corp., which reduced the price of its transport-grade LPG at noon Monday.

The price cut translates to P44 per 11-kilogram cylinder.

Drop in contract price

As a result, an 11-kg LPG cylinder now costs between P544 and P602.50. Autogas prices now range from P26-P28.67 a liter.

The oil firms attributed the price cuts to the significant drop in the international contract price of LPG this month.

Data from the Department of Energy (DOE) show that the price of LPG in the world market plunged to $490 per metric ton (MT) this month, from $804 per MT in October.

The price of the product rose to as high as $936.50 per MT in July, the same time the regional benchmark Dubai crude peaked at $137.27 a barrel.

More reductions coming

LPG prices had since registered a steady drop to $881 per MT in August, $828 per MT in September and $804 per MT in October.

In an earlier interview, Zenaida Monsada, DOE oil industry management bureau director, said consumers could expect more reductions in the prices of fuel and LPG this month, owing to steadily declining world prices.

The drop in this month’s LPG contract price should result in at least a P100-per-cylinder reduction, which should be felt before the end of the month, Monsada said.

Over the weekend, the LPG Marketers Association (LPGMA) brought down the prices of LPG by P3 a kilogram, or P33 per 11-kg cylinder.

LPGMA president Arnel Ty said weekly price cuts could be expected up to next month due to the huge drop in LPG contract price.