Wushin increases prices of LPG products

Wushin Corp. yesterday announced a 3-percent increase in the retail price of their liquefied petroleum gas and a 15 cents a gallon increase for bulk or wholesale customers effective March 2, citing price hikes in the international market and a 90 percent increase in wharfage.

This comes a few days after rival Saipan Industrial Gas Inc. announced a 10-percent hike in their LPG by March 1.

“Please understand that as much as we want to avoid raising our prices for as long as possible, we cannot afford to absorb the cost that has been brought by the…Feb. 13, 2009 price increase,” Wushin said in a notice to customers.

Wushin said effective March 2, there will be a general LPG price increase of 15 cents a gallon for bulk or wholesale customers.

For retail customers, prices will increase by 3 percent. A 90-lb cylinder of LPG will increase by $3.50, from $105.50 to $109.

Customers will see a $2-increase in the price of a 50-lb cylinder of LPG, from $60 to $62.

The retail price of a 40-lb cylinder of LPG will increase by $1.50, from $50 to $51.50.

A 20-lb cylinder of LPG will soon cost $27 after a 50-cent hike.

Sung Soo Lim, managing director of Wushin Corp., yesterday said the company has always been transparent in its LPG pricing and issues realistic public notices.

“However, we can’t easily predict the LPG prices since several factors influence [our] pricing especially on the island of Saipan, which differs from other places,” said Lim.

These include LPG price in the international markets, shipment schedules on- and off-island, and local taxes.

“The price increase passed on to us was since Feb. 13; however, we tried to delay the release of notice of increase to ensure that they will be getting a competitive and consistent pricing. Wushin is only increasing 3 percent out of its LPG cost, and not 10 percent…,” Lim said.

Wushin, he said, also tried to negotiate the price with its main supplier. Its current LPG products were purchased in January which resulted in only a slight price increase.

“Moreover, our main supplier on Guam will skip its purchase of LPG in February when prices soar high with a 32-percent increase, [and this] will favor our customers. We look forward to a stable pricing and hope that in March, the price will be stable,” Lim said, adding that despite the price increase, Wushin will still be committed to providing quality service to customers.

No price hike for LPG canister

Lim said Wushin will not raise the price of its LPG canister, which is used for pre-adjusted portable gas stoves.

The price will remain at 65 cents a can, and a deposit of $1 for each new bottle (refundable upon return) and pre-adjusted gas stove with a minimum cost of $13.

“However, some of our outlet costs for pre-adjusted canister and canister refills depend on their accessibility,” said Lim, adding that they have outlets at Happy Market in As Lito, Happy Market on Navy Hill, Dolphin Wholesale, Shell Highway Express, Alpex Saipan showroom, Mingming Store in Chalan Kanoa, and Kagman Market.

For inquiries, customers can call Wushin at 322-8733 or 322-7415.

By March 1, Saipan Industrial Gas Inc.’s prices will increase by 10 percent as LPG in the world market jumped by 33 percent. A 90-lb. cylinder of LPG, for example, will go up to $119 compared to the current price of $108.