MANILA, Philippines — Local consumers are bracing for higher cooking gas expenses this October as liquefied petroleum gas (LPG) prices are projected to rise by a cumulative ₱18 per kilogram, despite the government’s temporary suspension of excise taxes on the fuel.
Arnel Ty, founder of the LPG Marketers Association, stated that the price hike is being introduced in three separate tranches to mitigate the impact of rising geopolitical tensions in the Middle East on local buyers.
The initial upward adjustment of ₱10 per kilogram took effect on October 3, with subsequent hikes of ₱5 scheduled for October 10 and ₱3 on October 17.
“Retail prices for a standard 11-kilogram cylinder are expected to range between ₱1,425 and ₱1,550 depending on the retailer,” Ty said.
This series of rate hikes comes despite intervention from the Department of Energy (DOE) and the Bureau of Internal Revenue (BIR) aimed at shielding consumers from volatility in international energy markets.
Government authorities previously suspended excise taxes on LPG and kerosene to cushion domestic households from global market disruptions spurred by ongoing tensions involving the United States and the Middle East.
Under current regulatory terms, standard excise tax rates will be reinstated either three months following the suspension’s start or one week after average Dubai crude benchmark prices fall below $80 per barrel for a full month, whichever occurs first.
Meanwhile, price outlooks for other retail pump fuels present a mixed picture for motorists.
Diesel prices are expected to provide temporary relief with projected price cuts ranging between ₱1.00 and ₱1.20 per liter on Tuesday. Conversely, gasoline prices are set to move higher, with an estimated increase between ₱1.80 and ₱2.00 per liter.
The Department of Energy is expected to officially release the prescribed price adjustments for oil companies early next week.