Cooking gas prices are expected to increase at the start of the new year due to higher shipping costs as a result of political tensions in the Red Sea, a stakeholder said.
Regasco President Arnel Ty said while there is likely no price movement in the contract price of liquified petroleum gas for January 1, 2024, shipping firms have advised customers in the Philippines of additional costs amounting to $60 per metric ton.
This is due to problems in the Panama and Suez Canals resulting in reduced trips of vessels and additional fuel consumption by using longer routes.
According to Ty, the situation in the Red Sea also contributed to the increase in shipping fees.
Ty says the $60 increase translates to a price hike of P3.50 per kilo or P38.50 per 11-kilogram tank.
An LPG dealer said there is no alert so far on the impending price increase but he advises consumers to buy as early as now or before the new year.
Meanwhile, based on the results of trading after 2 days, there is a slight price reduction in diesel and gasoline of around P0.30 per liter.
Only kerosene is likely to have a rollback next week since its price reduction has already reached more than P0.90/liter so far.
Department of Energy Director Rino Abad said diesel and gasoline prices can still go either way due to uncertainty in the market brought about by geopolitical tension in the Red Sea.
BIOFUELS BLEND
Meanwhile, Director Abad said the national biofuels board has approved the additional 10 percent ethanol blend on gasoline which will become optional in the market and the mandatory additional 1 percent coco methyl ester on diesel, pushing the total blend to 3 percent.
The recommendation will be endorsed to Energy Secretary Raphael Lotilla for approval. Public consultations will also be held.
According to Abad, in terms of price, E-20 pr gasoline with 20 percent ethanol will be cheaper by P0.80/liter based on November gasoline prices.
For biodiesel, the price difference is negligible but the selling point, according to Abad is the additional market for coconut farmers since the demand will increase for coconut to produce biodiesel.
