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LPG shortage continues to plague Luzon
By Gloria Esguerra Melencio
Published in The Saudi Gazette on 07 - 02 - 2009

Cooking gas shortage continues to plague Manila, keeping consumers in limbo on where to buy cooking fuel or liquified petroleum gas (LPG).
Department of Energy (DOE) Secretary Angelo Reyes accused LPG dealers on Friday of hoarding or hiding their stocks and has ordered authorities to raid the traders' warehouses in Metro Manila.
Police on Wednesday found at least 1,700 LPG tanks hidden in a warehouse in Manila. The owner is being investigated to find out if there is enough evidence to charge him with economic sabotage.
Arnel Ty, president of LPG Marketers Association (LPGMA), said legitimate LPG dealers have no reason to hoard their stock and finger pointed to some unscrupulous businessmen of boarding to jack up prices.
The DOE, he said, has no inventory of LPG stock and uses only the LPG dealers as scapegoats.
Reyes refused to admit that there is an LPG shortage and pointed out that many consumers, including car owners, shift to LPG because it is cheaper that petrol or traditional gas fuel.
He also cited an additional increase in the demand for LPG last December because of the increased household cooking for the holidays.
He added that Malaysia, which used to deliver LPG to the Philippines, has also delayed its delivery for 2009.
Reyes said his office has no tools to run after erring LPG refillers because the LPG bill filed in Congress has yet to be approved.
But Ty rejected Reyes' allegation saying that the current LPG shortage is the “first time in 30 years” and that the DOE must face the problem squarely.
Filipino consumers of cooking gas have been complaining about the shortage in Metro Manila and other parts of Luzon since December last year.
The shortage has jacked up the prices of LPG gas. Data from the Energy department showed that an 11-kilogram LPG cylinder in Metro Manila now retails between P501.42 and P643.92, up from between P380 and P450 a cylinder in December.
DOE advisory said consumers must complain to the Energy department they be forced to buy an 11.6 kilogram LPG cylinder beyond P500.


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