LPG Shortage or Non-Shortage in the Philippines?

There is a lot of on going debate over the liquid petroleum gas (LPG) shortage in the Philippines. Debate number one could be summed up simply by saying "shortage or not?" Debate number two would be over who has caused the LPG shortage. Is it the retailers or the oil companies? LPG is used by most Filipino households for cooking purposes and is also used for fuel in some cases.

The primary concern at this point seems to be the kitchen LPG. Many families are finding it impossible to find a replacement LPG tank for their stoves meaning their only source of cooking is high priced electricity. Reports indicate a wait of a week or more to obtain replacement tanks after the LPG runs out. While the Government may say there is no LPG shortage, the average citizen trying to cook for their family sees LPG shortage entirely different. Parts of the Government believes there is no shortage, just an availability problem. In the eyes of the end user, a lack of LPG availability and LPG shortage are the same thing.

In November and December the LPG discussions were focused on rising costs, and in January this turned to an LPG shortage. As a result of a Government investigation into the matter, the Dept of Energy now blames hoarders and illegal refillers of the LPG tanks for the perceived shortage. Initial reports into the on going investigations said the National Bureau of Investigations (NBI) seized 2000 LPG tanks from a dealer's warehouse, supporting their claim of hoarding in anticipation of further rise in the price market for the precious commodity. Later reports revealed the 2000 tanks were empty, supporting the Refillers Association's claims that no product is available to them to fill the tanks.

In the Philippines, the LPG market is supposed to be deregulated, but the Government caps the selling price for the commonly used LPG tank at P500. However, recently retailers have started exceeding this price with no retribution. LPG supply has been cut by more than half to many of the refillers. Supplies of the LPG come from only 4 main sources which causes other Government sectors and media to allege the lack of product is a ploy to jack prices up due to a high demand.

While the investigations proceed into where the holdup in the product line is, and debates continue over whether there really is a shortage or not, Filipinos with empty tanks will surely say they feel the impact of a LPG shortage.

SOURCES:

http://newsinfo.inquirer.net/breakingnews/nation/view/20090204-187345/Hoarders-blamed-for-LPG-shortage

http://www.philstar.com/Article.aspx?ArticleId=435630&publicationSubCategoryId=63

http://www.abs-cbnnews.com/nation/metro-manila/01/31/09/doe-probing-chinese-trader-possible-lpg-hoarding

http://newsinfo.inquirer.net/breakingnews/nation/view/20090203-187209/Petron-to-hike-LPG-price-by-P2Kg

http://bulatlat.com/main/2009/01/24/probe-of-lpg-%E2%80%98shortage%E2%80%99-should-start-with-%E2%80%98big-four%E2%80%99-firms/

http://bulatlat.com/main/2009/01/31/lpg-supply-still-tight-gov%e2%80%99t-clueless/