Oil firms increased the price of liquefied petroleum gas or LPG prices by as much as P1.20 per kilogram or P13.20 per 11-kilo tank effective Dec. 1 to reflect the higher contract price of LPG in the world market this month.
Petron Corp. and Solane LPG issued separate advisories of the LPG increase
“This reflects the international contract price of LPG for the month of December,” Petron said.
Petron implemented a P1.20 per kilo (VAT-inclusive) increase in LPG prices effective 12:01 AM Dec. 1 while Solane raised LPG prices by P1.19 per kilo (VAT inclusive) effective Dec. 1 at 6AM.
This developed as consumers can expect a mixed oil price movement on Tuesday with gasoline increasing by as much as P0.90 per liter but diesel will have a rollback of as much as P0.30 liter.
Jetti Petroleum president Leo Bellas said that based on the latest computation, gasoline may increase from P0.80 to P0.90 per liter while diesel will not a movement or a rollback of P0.10 to P0.30 per liter.
“Supply concerns eased but oil’s geopolitical risk premium is still there. – Lower-than-usual exports of gasoline and diesel from China kept prices elevated but the supply gap on diesel partly bridged by outflows from India into the region thus limiting the upside on prices,” Bellas said last week.
He said further delays in the return of oil production from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) continue to support oil prices.
The Department of Energy confirmed the mixed oil price movement next week.
DOE Oil Industry Management Bureau (OIMB) Director Rodela Romero said gasoline may increase by P 0.55 to P0.80, no adjustment in diesel of rollback of up to P0.30 per liter and kerosene rollback of P0.10 to P0.30 per liter.
Romero said the rollback can be attributed to lower crude prices following a US-brokered ceasefire between Israel and Hezbollah, lifting hopes for a wider regional peace deal.
She said China’s downward consumption trajectory also pulled down prices.
Meanwhile, Romero said the rollover of OPEC+ production cuts as the easing of the output curbs could begin gradually in April 2025, and the unexpected drip in US crude inventory boosted oil prices.
On Nov. 26, 2024, oil companies implemented an increase of P1.15 per liter for gasoline, P1.10 per liter for diesel and P0.80 per liter for kerosene.
Year-to-date, total adjustment of gasoline and diesel stands at a net increase of P10.45 per liter and P9.75 per liter, respectively. On the other hand, kerosene has a total net decrease of P1.50 per liter.
