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The Philippines is set to boost its liquefied petroleum gas supply with 66 million kilograms coming from the United States, Canada, and Mexico in the second quarter.
Arnel Ty, founder of the LPG Marketers Association Inc. and president of Republic Gas Corp., said industry leaders met with the Department of Energy this week and were briefed on the government-to-government procurement.
The Marcos administration is expected to spend between P2 billion and P2.5 billion to secure the shipments, which would cover 20 to 30 days of domestic demand.
Ty said the country’s current LPG inventory is sufficient for 35 to 40 days, adding that the government plans to sell the acquired supply to retailers at cost, similar to recent diesel purchases.
Shipments from the three countries are expected to arrive between mid-May and early June, Ty said, noting that bidding for fresh supplies has become increasingly costly.
The government’s procurement aims to raise reserves to cover a total of 60 days, but it will rely on private storage facilities since no government warehouses are available.
Local suppliers are also negotiating with smaller producers to secure additional stocks amid rising household demand and commercial use.
Meanwhile, consumers face higher costs as LPG prices have increased this month, with Seaoil Philippines Inc. raising rates by P36.63 per kilogram.
