Manila suspended the LPG tax, so why is the 11-kg cooking-gas tank US$3.20 dearer? — Philstar
Republic Gas Corp. is lifting cooking-gas prices by US$0.29 a kilo in three steps, on 3, 10 and 17 October, adding US$3.20 to an 11-kg tank that costs about US$21 after step one. The US$0.05-a-kilo excise suspension vanished in the first step.
Positive-sum angle: Regasco's Arnel Ty blames a US$65-a-tonne jump in Saudi Aramco's contract price, Dubai crude at US$113 from US$90, and China halting fuel exports in October. A ladder beats a cliff: eateries can reprice weekly, and the Malaysian, Thai and Indonesian suppliers Ty calls dearer gain a second buyer.
What's the impact: A Manila eatery burning a tank every three days should price the 10 and 17 October steps into this week's menu, and quote catering with a gas line that moves. In Mindanao the tank already costs US$2.40 (P150) more than in Luzon, so a dealer price locked before 17 October matters most there.