Probe of LPG ‘Shortage’ Should Start with ‘Big Four’ Firms

Published on January 24, 2009

A supposed shortage in the supply of liquefied petroleum gas (LPG), one of the prime commodities in the Philippines, has sent some quarters pushing for an investigation into the issue. The question, however, is the context within which the probe is to be carried out, as one critic has argued.

BY ALEXANDER MARTIN REMOLLINO
(Bulatlat.com)

A supposed shortage in the supply of liquefied petroleum gas (LPG), one of the prime commodities in the Philippines, has sent some quarters pushing for an investigation into the issue.

The question, however, is the context within which the probe is to be carried out, as one critic has argued. For Arnold Padilla of Bagong Alyansang Makabayan (Bayan or New Patriotic Alliance), any investigation into the supposed LPG shortage should start with the four big companies that lord it over the domestic market: Petron, Liquigaz, Shell, and Total.

In the last few weeks, it has become increasingly difficult in the Philippines to buy replacement liquefied petroleum gas (LPG) tanks after one’s supply has run out. In some cases, households and other customers now have to wait for as long as one week or even longer just to receive the LPG they ordered.

The supposed shortage of LPG supply has been driving prices up, in many instances beyond the P500 ($1.05 at the current exchange rate of $1=P47.40) price cap imposed by the Department of Energy (DoE).

This development is distressing, considering the importance of LPG to most Filipino households, as well as in the generation of power and in the transport sector.

Amid the supposed “shortage” of LPG supply, the Department of Energy (DoE) has warned LPG dealers that those who retail 11-kg tanks at more than P500 ($1.05) will be dealt with.

Meanwhile, the House of Representatives Committee on Energy chaired by Pampanga Rep. Juan Miguel “Mikey” Arroyo has scheduled an investigation into the supposed LPG shortage for Feb. 3.

“We are to be careful in making speculations that may affect our economy,” Arroyo said. “If there is really such a shortage, we have to know the extent and identify how it will affect the price of electricity and the public transport sector.”

But according to Arnold Padilla of Bagong Alyansang Makabayan (Bayan), these moves of the DoE and the House Committee on Energy will amount to nothing.

“These efforts…are futile in the context of a deregulated downstream oil industry,” he said.

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