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LPG prices surge, negating tax cut
4 Oct
Summary
- LPG prices are set to increase by P18 per kilogram in October.
- Suspension of excise tax on LPG is proving ineffective.
- Laundry shop owners fear rising costs and potential client loss.
The P18 per kilogram price increase for liquefied petroleum gas (LPG) anticipated this October will effectively nullify the recently enacted suspension of its excise tax. The LPG Marketers Association (LPGMA) stated that global market prices have surpassed the savings from the tax reduction.
According to LPGMA President Arnel Ty, China's current export ban on petroleum products and longer shipping times for crude oil from the United States are contributing factors to the rising costs. The exact duration of these price hikes and their continuation into November and beyond remain uncertain.
Businesses heavily reliant on LPG, such as laundry shops in Quezon City, are expressing significant concern. Owners and workers anticipate absorbing additional costs to retain customers, despite already facing potential water supply shortages due to the Super El Niño phenomenon.
These rising fuel costs come at a difficult time for businesses. A previous LPG price increase in April led to a reduction in customers, and another hike may force businesses to raise rates again to avoid operating at a loss. Preparations for potential water rationing are also underway, adding another layer of operational challenge.
