LPG balloon would rise 10% for 8 million families from May 26, warn unions

The Peruvian Society of Liquefied Gas (SPGL) warned that the withdrawal of liquefied petroleum gas (LPG) from the Fuel Price Stabilization Fund (FEPC), scheduled for May 25, would increase the price of gas cylinders for 8 million homes by at least 10%.

According to the union, said output would leave domestic LPG without the mechanism that allowed stabilizing the cost as raw material to bottle gas cylinders against the rise suffered by the raw material in the international market.

“This would impact the housewives of the almost 8 million homes, the thousands of Mypes and the thousands of taxi drivers who use this type of energy for their daily activities in Peru,” he said.

For this reason, the SPGL said that, in the event that this oil derivative is withdrawn from the FEPC, not only is there a risk of an initial increase in the price for users, but also a “risk of further increases in the future in a context of high volatility of the international cost of LPG”, a situation that to date is contained by the FEPC.

“From the SPGL, we call on the authorities to extend its validity, since it is a mechanism that has had an adequate operation, by avoiding an abrupt increase in the value of the gas cylinder, mainly for the benefit of the most vulnerable families in the country. ”, said Samuel Vásquez, president of the SPGL.

SPGL said that this exit will occur in a context in which the cost of raw materials is rising internationally due to a lower supply. Bulk LPG, which is used in taxis, in the poultry and agri-food industries, was withdrawn from the Stabilization Fund at the end of March.