FILE PHOTO
MANILA, Philippines—Oil firms dropped prices of liquefied petroleum gas (LPG) for the month of August as weak price trends haunted the international fuel market.
According to separate advisories from major LPG providers Petron Corp. and Isla LPG Corp., they are reducing the prices of their respective products for the month starting 12:01 a.m., Friday (August 1) to reflect the drop in international contract prices.
Petron said it would reduce the price of its Gasul branded household LPG P2.25 per kilogram and by P1.25 per liter for its Xtrend branded auto LPG product.
Isla LPG said it would roll back the price of its Solane branded LPG by P1.90 per kilogram. That is equivalent to P21 of VAT inclusive savings per 11kg. of Solane LPG cylinder.
The decline in LPG prices follows weak price trends for fuel products in recent weeks.
On Tuesday, oil firms imposed the third weekly rollback on gasoline products as crude supply continued to be more than demand despite conflict in oil producing countries.
Petron, Shell, and Seaoil said in separate advisories that from 12:01 a.m. July 29, they imposed a rollback of P1.20 per liter for gasoline, P0.25 for diesel, and P0.20 for kerosene. PTT Philippines said it implemented similar changes for gasoline and diesel. Phoenix Petroleum said it would impose similar price cuts for gasoline and diesel starting 6 a.m. Tuesday.
Despite short-term supply concerns, there remains downward pressure on prices as demand growth has stayed sluggish while long-term supply seems stable with the US shale boom adding to Middle East supply, according to analysts.
For several weeks now, crude prices have been in turmoil over conflicting expectations on Middle East production. Sectarian violence in Iraq and Libya has curbed oil exports but Iran, at least, is seen to potentially boost production.
RELATED STORY