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Saipan’s LPG prices increase
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Posted on Nov 24 2005
A major liquefied petroleum gas company on Saipan increased prices by up to $3 per cylinder earlier this month, and another round of price hikes becomes imminent as the demand for LPG increases during the winter season.
DL Corp., the retailing arm of LPG wholesaler Wushin Corp., said the price increase took effect on Nov. 3. DL Corp.’s Joe Digno said Wushin has informed his company of a new round of price adjustments that would be implemented by December.
Wushin general manager Enoch Sungsoo Lim could not be reached for interview as of press time, but Digno said that, based on the information he received from the wholesale company, LPG prices would increase by up to $5 per cylinder in December.
If the new price hike pushes through, the cumulative price increase for a 90-lb. cylinder LPG will reach $8.
Beginning Nov. 3, the residential price of LPG in 90-lb. cylinders increased by $3 for a new price of $79 each. The prices of LPG in 50-lb. and 20-lb. cylinders rose by $2 and $1, respectively; those LPGs sell at $46 and $21.
Once the proposed price hike for December is implemented, LPG in 90-lb. cylinders would sell at $84 each. LPG in 50-lb. and 20-lb. cylinders will increase by $3 and $1 for higher residential rates of $49 and $22, respectively.
According to Digno, the recent LPG price adjustment came about due to the price increase implemented by Guam-based supplier South Pacific Petroleum Corp.
The Guam company reportedly cited higher cost of the product in the international market as basis for the price adjustment.
Digno also said the demand for LPG normally rises during the winter season, thus pushing up its price. Disasters that struck the United States earlier this year, such as Hurricane Katrina, also negatively impacted the supply of LPGs from refineries.
Sometime in May, Wushin increased wholesale and commercial rates of LPG by up to 30 cents per gallon, but maintained residential rates to cushion the impact of upward price adjustment.
Commercial and wholesale rates on Saipan vary depending on the volume of orders, according to Wushin. The price increase last May pegged Wushin’s LPG commercial rates at over $3 per gallon.
