Major price cut in LPG seen

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

June 28, 2026 | 12:00am

MANILA, Philippines — Prices of liquefied petroleum gas (LPG) are set for a major rollback of P12 per kilogram starting July 1, according to Regasco president Arnel Ty.

While previous rollbacks were attributed to lower shipping costs, this time around, it’s the contract price itself that has started to decline.

“Because of the memorandum of understanding signed by the United States and Iran, we saw a drop in the forecast of the contract price and we believe that this will be reflected when Saudi Aramco makes an announcement by the end of the month,” Ty told radio dzMM yesterday.

He said that as of Friday, the contract price from Aramco is seen plummeting by about $200 per metric ton, which translates to the P12-per-kilo decline.

When the Gulf War broke out on Feb. 28, the contract price surged by over $200 per metric ton, bringing the price of the standard 11-kilogram cylinder to as high as P1,500.

But LPG prices have fallen since May, as traders have found alternative suppliers and shipping routes.

Ty said LPG prices may return closer to pre-war levels after July, depending on the progress of talks between the US and Iran.

“The next thing we’re looking at is the regular passage to the Strait of Hormuz,” he said. “Once that becomes regular… then we expect that (LPG) will go back to pre-war pricing.”

But uncertainties remain over the state of the strait as the US recently launched strikes against Iran in retaliation for Tehran’s attack on a vessel that transited through an alternative route within the strait that is closer to Oman.