Following supply shortages vexing motorists at retail stations, it is the turn of the households to turn ‘panicky’ with fears that scarcity in liquefied petroleum gas (LPG) products may afflict the oil industry next.

The extended implementation of Executive Order 839 has been causing the market “to run dry,” that people’s patience also start running out – in what is now evident to them as reckless imposition of a policy.

Many household end-users revealed they are now stocking up on their LPG supplies – that instead of just having one tank at their homes, they now opt for reserve supply.

Given that, the possibility of sudden volume surge may roll up. Yet, with the government now squeezing blood from the oil companies because of the EO’s imposition, it is not likely that they can easily supply the increased needs of the market.

Logically, the oil firms cannot just purchase additional volume from the international market especially since the product will just be sold at a loss in the domestic market. It must be noted that the contract price of LPG surged past $75 per metric ton this month to $660/MT from month-ago level.

Over the weekend, long queues have already been noted at Liquigaz facility in Bataan – a scenario that was only seen when the country suffered from LPG supply crisis in December last year until early part of 2009.

“The trucks lining up at our facility have nearly doubled,” an executive at the LPG firm said.

Some LPG refillers claim they cannot source supply from Petron Corporation so they have decided to procure their supply from Liquigaz, as an alternative.

When checked with Petron, company executives noted that their volume commitments to clients and retail outlets are fully accounted for.

“However, if there is sudden volume shift or increase in demand, we cannot accommodate additional volume from non-clients,” the company said.

Other LPG players, like Pilipinas Shell Petroleum Corporation and Total Philippines also indicated that they have enough supply for their contractual commitments and outlets.