GATCHALIAN CALLS ON DOE, DTI TO CONSIDER LPG PRICE CAP

SENATOR Sherwin Gatchalian on Saturday called on the Department of Energy (DoE) and the Department of Trade and Industry (DTI) to consider imposing a price cap on liquefied petroleum gas (LPG) amid the ongoing crisis in the Middle East.

“The impending increase in the price of LPG by P35 to P40 per 11-kg cylinder by April to reach record levels is an added financial burden on ordinary Filipino consumers and small business owners,” Gatchalian, chairman of the Senate Finance Committee and the PROTECT Committee, said.

The senator urged the DOE and the DTI to ensure adequate supply, strictly monitor market pricing, and, if price increases are unwarranted, consider imposing a price ceiling on LPG as a prescribed measure against undue price increases during emergency situations provided under RA 10623 or An Act amending certain provisions of the Price Act (RA 7581) to protect consumers. 

“Ang LPG ay pangunahing pangangailangan sa bawat tahanan at maliliit na negosyo tulad ng mga karinderya. Anumang hindi makatuwirang pagtaas ng presyo nito ay dagdag na pasanin lamang sa kabuhayan at sa presyo ng pagkain para sa ordinaryong Pilipino,” Gatchalian added.

Earlier, Regasco President Arnel Ty has sounded off a hefty price increase in LPG as shipping costs multiplied by 4 to 5 times due to the war in the Middle East.

Ty said the increase in shipping costs alone is already equivalent to a hike of P30/kilo.

Aside from that, the contract price of LPG is now higher by $95/metric ton, which translates to an increase of around P5/kilo.

If sustained until the last day of March, it means the increase will range from P35-P40/kilo for April 1, which is a whopping P385-P440 spike on an 11-kilogram cylinder.