Liquefied petroleum gas (LPG) prices may still increase even if the government suspends the excise tax on the fuel, an industry stakeholder warned.
Regasco President Arnel Ty said the expected LPG price increase has been reduced to between ₱10 and ₱15 per kilogram from the earlier estimate of ₱10 to ₱25 per kilogram, following a decline in crude oil prices.
However, Ty said LPG prices could still rise by around ₱4 per kilogram even if the excise tax is removed, assuming the expected increase remains at ₱10 per kilogram.
The current price of a standard 11-kilogram LPG tank is between ₱1,200 and ₱1,400. If a ₱10-per-kilogram price increase is implemented, the cost could rise to more than ₱1,300 to ₱1,500 per tank.
Ty said the LPG industry is prepared to spread out the additional price increase if the Department of Energy requests it.
Meanwhile, Palace Press Officer Claire Castro said the Development Budget Coordination Committee has completed its study and submitted its recommendation to President Ferdinand Marcos Jr.
The Palace has not disclosed details of the recommendation.
Castro urged the public to wait for the President’s final decision on the proposed suspension of the LPG excise tax.
The potential suspension is being considered as LPG prices face an expected increase. However, based on Ty’s statement, the removal of the excise tax would not necessarily prevent a price increase.
The industry has also indicated its willingness to spread the additional cost if requested by the Department of Energy.
