LPG Contract Price (CP)
LPG Contract Price (CP), commonly called the “Saudi CP” is the primary driver of LPG pricing in the Far East including the Philippines. It is the international price benchmark set at the beginning of each month by Saudi Arabia’s state - owned oil company Saudi Aramco.
Aramco's CPs, which set the price of LPG lifted from the Saudi ports Yanbu, Ras Tanura and Ju'aymah under term supply contracts, are closely watched by the market as they tend to set a base level for LPG pricing for most markets East of Suez.
The DOE refer to the LPG/Saudi CP and forex monthly average changes in determining/monitoring the price adjustments of LPG in the domestic market. Following the timing of the monthly changes in CP, domestic price of LPG also varies every first day of the month and remain constant throughout the whole month.
Like all other petroleum products, the Philippines has no influence over the LPG CP as the country’s domestic requirement is small versus the world demand.
For the month of April 2022, LPG Contract Price has increased by US$41.50/MT to US$ 954.00 /MT, from US$ 912.50/MT last month.
International LPG Market Development1
- Saudi Aramco set its April propane contract price at $940/MT, up $45/MT from March, and April butane CP at $960/MT, up $40/MT from March.
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The April propane and butane CPs were set near the high-end of lifters' recommendations. Asian lifters recommended that Aramco set the April term propane CPs in the $900-$950/MT range and butane was expected to be $20/MT above that.
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The April CPs marked the third monthly increase in a row, but were below the highest level seen since February 2014, when the propane CP was at $970/MT and the butane CP also was at $970/MT, S&P Global Commodity Insights data showed.
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LPG demand growing in West Africa
- Consumption of LPG has been growing in Africa, and notably West Africa, as a clean and safe alternative to charcoal and/or wood but its wider adoption -- including in rural communities -- faces multiple challenges, according to speakers at an African Refiners Association (ARDA) conference.
- Around 80% of LPG used in Africa serves for domestic consumption, mainly cooking, while around 10% is used in the petrochemical industry and the remaining 10% mostly in agriculture.
Domestic Prices
Oil companies increased the price of LPG effective 01 April 2022 by P3.25 kg to P3.40 kg or about P35.75 per 11- kg cylinder. Auto LPG likewise increased by P1.80 to P1.81/liter.
As of 01 April 2022, household LPG in Metro Manila are estimated to range from P915.75 to P1,135.75 per 11- kilogram cylinder.
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Shown below are the retail prices of 11 Kg. Household LPG |
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| Year | Domestic Price |
Adjustment/Kg. Increase (-Decrease) |
|
| 2021 | |||
| January | 600.00-905.00 | 4.15-4.20 | |
| February | 634.00-937.00 | 2.95-3.00 | |
| March | 643.00-946.00 | 0.73-0.82 | |
| April | 605.00-784.00 | (3.27)-(3.30) | |
| May | 639.00-900.00 | (3.15)-(3.20) | |
| June | 600.00-920.00 | 2.18-2.44 | |
| July | 655.00-960.00 | 5.19-5.20 | |
| August | 710.00-992.00 | 3.27-3.35 | |
| September | 780.00-995.00 | 0.64-0.65 | |
| October | 832.00-1040.00 | 7.40 | |
| November | 884.00-1085.00 | 2.73-3.10 | |
| December | 850.00-1037.00 | (4.37)-(4.75) | |
| 2022 | |||
| January | 794.00-1010.00 | -2.55 | |
| February | 793.00-1053.00 | 4.00 | |
| March | 880.00-1100.00 | 7.95-8.00 | |
| April | 915.75-1135.75* | 3.25-3.40 | |
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Note: *Prices for April2022 are estimates |
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For more information, call the Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: www.doe.gov.ph
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1 Platts news