The Ministry of Energy and Mines (Minem) determined that the price band for packaged liquefied petroleum gas (LPG-E, also known as kitchen ball) will be defined by the Import Parity Price (PPI), and now not by Export Parity Price (EPP), in the Fuel Price Stabilization Fund (FEPC).
Through supreme decree No. 001-2024-EM, the Peruvian Government provides that, from now on, the update of the target price band for LPG-E will be carried out on the last Thursday of each month, as long as the PPI -and no longer the PPE- is “above the upper limit or below the lower limit of the band, according to established criteria.”
The FEPC is a mechanism used by energy sector operators to avoid volatility in fuel prices. At some point, LPG-G (bulk) was also included, intended for vehicular use.
In the supporting reasons, Minem points out that the inclusion of LPG-E in the FEPC, under the previous conditions, implied “a significant variation in the primary sale price and, therefore, in the price to the end user.”
“Therefore, it is necessary to modify the conditions in order to mitigate said impact and make it progressive,” the document states.
It should be noted that the update of the target price band for LPG-E is equivalent to 3.5% of the variation in the final consumer price of this product.
Additionally, Minem considers it pertinent to continue with the implementation of various measures within the framework of the Energy Social Inclusion Fund (FISE) under the FISE Discount Voucher program.
“Which purpose, among others, is to expand, in a targeted manner, the number of beneficiaries of said program for the population in vulnerable situations,” concludes the decree.
Source: Larepublica
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