TWO major liquefied petroleum gas suppliers are cutting prices this month despite mixed market signals as demand for heating fuel weakened.
Petron, which holds more than 40 percent of the Philippine LPG market, said in an advisory that it trimmed LPG cylinder product prices by P0.25 per kilogram as of 12:01 a.m. Friday.
AutoLPG prices were also cut by P0.14 per liter, Petron said.
Another provider, Total, said it was to slash the prices of its LPG cylinder products by P0.25 per kilogram (VAT inclusive) as of 6 p.m. yesterday.
The rollback reflects contract prices of LPG for the month of May, the oil firms said.
Industry observers said that with warmer weather setting in even in countries just out of the winter season, LPG demand for heating has been cut.
This softening demand for heating is putting a downward pressure on prices even though LPG demand for transport is seen as stable and freight cost for shipping is high.
Prices are generally expected to get lower or at least remain stable in coming months as LPG production is seen to increase, although there are mixed signals: LPG prices have increased in Europe but are falling in the US and Asia.
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