Another LPG distributor raises prices

Liquefied petroleum gas distributor Saipan Industrial Gas, Inc. disclosed yesterday that it would raise its rates beginning this Friday.

The price adjustment follows a similar move by another LPG company, Wushin Corp., which implemented price hikes effective Dec. 2.

Saipan Industrial Gas operations manager Noli Constante said the company had yet to finalize the new rates, but said that LPG in 90-lb. cylinder containers would increase by $4 to $6, while commercial rate would increase by 23 cents per gallon from the price of $3.98 per gallon.

Constante said the company decided to implement a price hike, its third for the year, due to increased cost of supply from Shell Marianas, Inc. on Guam.

He further justified the increase by saying that Shell had increased the product cost for at least seven times since the beginning of the year, but Saipan Industrial Gas had often maintained its prices and absorbed the increased cost without passing it on to consumers.

“Shell has increased LPG prices several times, but we try to control our prices as much as possible,” Constante said. “We even have much lower prices for LPGs compared to Guam’s prices.”

The price of 90-lb. LPGs, which Saipan Industrial Gas currently sells at $79 per cylinder, will become $83 to $85 once the company implements the price adjustment. Forty-pound LPGs will sell at $40 each, increasing by $2 from the current price. Constante said his company would retain the current price of 20-lb. LPGs at $22 per cylinder.

Saipan Industrial Gas’ commercial rate for LPG will become $4.21 per gallon effective this Friday.

Despite the increase, Constante noted that his company sells LPG at much lower prices compared to retail prices on Guam, where Saipan Industrial Gas sources out its supply.

He said the average price of 20-lb. LPG on Guam reaches $28 each. The 50-lb. and 100-lb. LPGs sell at $66 and $120, respectively; computed pro rata, Constante said those would translate to an estimated price of $53 for 40-lb. LPG and $108 for 90-lb. LPG.

Effective Dec. 2, Wushin Corp. also raised LPG prices, citing an increase in the cost of supply, which it sources out from South Pacific Petroleum Corp. on Guam. The company also justified the increase in LPG prices by citing the high demand for propane gas worldwide during the winter season.

Wushin implemented a $5-increase in the price of 90-lb. LPG, which now sells at $84 each. Fifty-lb.- and 20-lb. LPGs now sell at $49 and $22 per cylinder, representing increases of $3 and $1, respectively.

Last Nov. 3, Wushin also implemented a 15-cent gallon price increase for commercial gallon rates, which had ranged from $3.40 to $3.90. On Dec. 2, Wushin again hiked gallon prices by 25 cents, which pegged commercial rates between the ranges of $3.65 to $4.15.