PETRON, SHELL ROLL BACK LPG PRICE BY P1/KG
MANILA, FEBRUARY 2, 2008 (STAR) By Donnabelle Gatdula - Petron Corp. and Pilipinas Shell Petroleum Corp. rolled back yesterday the prices of their liquefied petroleum gas (LPG) products by P1 per kilo or P11 per 11-kg cylinder.
The reduction was brought about by the substantial drop in international LPG contract prices from $873.50 per metric ton last month to $802.50 this month.
The LPG price rollback came simultaneously with the implementation of their P1 per liter cut in the price of diesel due to a two-percentage point tariff cut on imported fuel products or from three percent to one percent.
Before the reduction, the price of LPG products averaged P594 to P633.50 per 11-kg tank.
Industry sources said there would be more cuts in LPG prices in the coming weeks with the $71 drop in LPG international contract prices.
Sources said the oil companies will likely reduce LPG prices by nearly P3 per kilo due to the huge drop in LPG prices abroad.
Industrialist Raul Concepcion, Consumer and Oil Price Watch chairman, said they are in favor of removing the 12 percent value-added-tax for residential customers whose consumption is not more than one 11-kg LPG tank per month.
“This means that from the current price of P600, they will now pay P530 as a result of the removal of the 12 percent VAT,” he said.
The government should place safety nets for the poor by keeping the price of socially-sensitive LPG at reasonable levels, he added.
Concepcion urged jeepney operators to convert their engines to LPG-powered, which will cost P5,000 and can be paid in less than two years.
Bus operators should accelerate the program for the use of compressed natural gas (CNG) in Metro Manila, he added.
Concepcion said by using CNG, bus drivers and operators could save up to P22.84 per liter.
CNG is being sold at a subsidized rate of P14.52 for the next seven years compared to the prevailing P37.36 per liter of diesel, he added.
Chief News Editor: Sol Jose Vanzi
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