LPG prices are set to climb by a total of P18 per kilogram this October, with industry players attributing the increase to higher contract and freight costs linked to tensions in the Middle East.
The adjustment will be implemented in three stages. LPG Marketers Association founder Arnel Ty said the first increase of P10 per kilogram will take effect on October 3, followed by another P5 on October 10 and P3 on October 17.
Once all three adjustments are in place, the price of an 11-kilogram LPG cylinder could rise to around P1,600 from about P1,400.
Ty said supply remains available, but costs have increased amid disruptions affecting the Strait of Hormuz and uncertainty surrounding developments in the region. He also cited China’s reported move to restrict exports of finished products as another factor the industry is monitoring.
The Department of Energy has instructed LPG suppliers to explore alternative sources from other countries, Ty added.
The higher prices are expected to weigh heavily on small food businesses that rely on LPG for daily operations.
Some carinderia operators in Quezon City said the cost of an 11-kilogram tank has already risen significantly compared with previous years. One owner said he currently pays around P1,100 even with a supplier discount, but does not plan to pass the additional expense on to customers.
Other small food businesses said they are also reluctant to reduce serving sizes to offset higher operating costs, fearing this could drive customers away.
The latest adjustment comes as consumers and small enterprises continue to grapple with rising operating and household expenses.