Regasco starts three-phase LPG price hike amid global cost surges

Republic Gas Corp. (Regasco) has started raising the prices of its liquefied petroleum gas (LPG) products in three phases, effectively nullifying the recent excise tax suspension due to high global crude prices. The first increase of P10 per kilogram took effect on October 3, followed by a P5 per kilogram hike on October 10, and a final P3 per kilogram adjustment on October 17. The total price hike will make an 11-kilogram cylinder P198 more expensive, with the initial phase pushing the price to around P1,300 per tank. Regional variations will persist, as LPG in Mindanao remains P150 costlier than in Luzon due to transportation expenses.

Regasco president Arnel Ty attributed the price surge to rising contract and freight costs in September. Saudi Aramco's LPG price hike of $65 per metric ton, equivalent to P5 per kilogram locally, combined with a spike in Dubai crude oil prices from $90 to $113 per barrel, contributed to a P18 per kilogram total increase. These global market shifts outweighed the P3-per-kilogram price cut resulting from President Marcos' excise tax suspension at the end of September.

Other LPG providers like Solane and Petron Gasul have yet to announce similar price adjustments. Supply concerns also loom as China, Regasco’s primary supplier, suspended fuel exports in October to secure domestic inventory. While Regasco holds 20 days’ worth of supply, exceeding the minimum requirement, alternatives from Japan, Korea, Malaysia, Thailand, and Indonesia are more expensive. The export status from China remains uncertain following its weeklong public holidays, with fuel exports currently limited to Hong Kong and Macau.

Ty expressed hope that US-Iran negotiations might resume after the US midterm elections on November 3, though their outcome hinges on congressional control. Polls suggest Trump’s Republican Party is trailing the Democrats, with high gas prices driven by the war impacting Americans' cost of living.