Wazzup Pilipinas!
Amidst the increase of liquefied petroleum gas (LPG) prices, the Department of Energy (DOE) today assured that it is closely monitoring the local LPG market to make sure that only reasonably priced LPG products are being sold to consumers.
Energy Secretary Alfonso G. Cusi reported: “Our Oil Industry Management Bureau (OIMB) is closely assessing the global trend of supply and demand, while also taking into consideration other factors affecting the prices of LPG.”
"The DOE-OIMB reported that the root cause of the LPG price hike this month was due to the increased demand by the cold weather continents such as North America, Europe and even Northern Asia," Sec. Cusi explained.
Moreover Cusi added, "LPG is primarily being used as a heating fuel in these regions, especially with the extended cold weather or winter attributed to La NiƱa."
Sec. Cusi clarified, “Large consuming countries are having a hard time getting their supply because even the transportation of these LPG products, mostly through railway, is also affected by the cold weather. This curbs supply, then affects the demand, and ultimately the prices.”
"The DOE-OIMB report also cites the rising global crude oil prices and outages of oil refineries in some oil-producing countries as additional factors for the rising prices of LPG."