The premature pricing advisory of the LPG Marketers Association (LPGMA) triggered new round of panic buying that cause stress on supply-demand balance on domestic liquefied petroleum gas (LPG) products.

But the industry players assured the situation never reached ‘supply shortage proportion’, despite the sudden increase in demand towards the last week of August.

In a meeting with stakeholders, Energy Secretary Angelo T. Reyes brought the discussion around ensuring that “there was really no shortage in LPG supply;” adding that “there was a surge in demand in the last week of August because of the premature announcement that prices would increase by P4.50 per kilo.”

In fact, based on information culled from importers and refiners, “there has been no decrease instead there had been an increase in the throughput supply downstream.”

For instance, Total Philippines reported that its supply actually doubled; while Petron Corporation has a surplus, increasing its supply base by 15 about percent. Pilipinas Shell Petroleum Corporation logged 15 percent increase in throughput, while Liquigaz has more than 20 percent hike in throughput.

“Our average sales to wholesalers stand at 130 metric tons per day but during the last week of August it increased to 250 to 280MT per day. So there was absolutely no reason for the wholesalers that they cannot get supply. As we mentioned, we continue to have normal supply and we’re able to serve the normal needs of our customers and we have more than enough for everyone,” Total corporate affairs manager Malou Espina said.

For Petron, Virginia Ruivivar, public affairs manager, bared the company actually had a surplus of more than 4,000 metric tons.

Given the scare it ignited among consumers, Reyes called on the LPG players “to desist from making
premature announcements that will create panic in the market as what happened in the last week of August.”

In the latest round of price adjustments, it was the LPGMA group of Arnel Ty that imposed the highest price increase of P4.00 per kilogram; as against the P2.25 per kilo of Liquigaz, Pilipinas Shell and Petron; and P2.52 per kg for Total.