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LPG price cut looms anew
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Posted on Dec 23 2008
Liquefied petroleum gas users may expect another round of price decrease next month, according to LPG supplier Wushin Corp.
After the company slashed prices by $0.45 last Nov. 27 as post-Thanksgiving and pre-Christmas present to the island’s LPG users, Wushin said worldwide trends point to another price decrease in January 2009.
“There might be a price change/decrease by January 2009 because of the world market trend but it [is not sure] because it all depends on the shipments of [the] LPG mother vessel to Guam and the schedule. Let’s just hope there will be more of the price reduction,” the company said in a statement.
Price trends from Saudi Aramco shows that the cost of LPG is at its lowest levels for the year.
March 2008, which is the earliest baseline month available, saw the bulk cost of propane at $820 and that of butane at $825. It was at its highest level in July 2008, when propane hit $905 and butane $950.
Prices began to dramatically decrease starting November 2008 when it was pegged at $490 for both propane and butane. Currently (December 2008) the bulk cost of propane is $340, while that of butane is $335.
The company’s recent decision to slash prices resulted in the cost of the 90-gallon LPG cylinder dropping from $114.50 to $106.50, the 50-gallon LPG cylinder from $67 to $62, the 40-gallon LPG cylinder from $56 to 52, and the 20-gallon LPG cylinder from $29.75 to $27.75.
Wushin also clarified that the price of LPG is not tied to the wet fuel price (diesel and gas), because “no matter what the pump price [are], it will not determine the price of LPG except for the landing cost of which fuel price affects the cost of freight and handling, particularly fuel surcharges.”
Wushin is a wholesaler of LPG for commercial purposes, sells LPG cylinders for residential customers, and is a retailer of LPS accessories. The company also offers LPG connection and installation services. For more information about Wushin, call 322-7415 or 322-8733.
