BY EUAN PAULO C. AÑONUEVO Reporter

Retailers of liquefied petroleum gas (LPG) plan to implement a weekly reduction in prices in anticipation of a significant drop in international prices in March.

Arnel Ty, LPG Marketers Association (LPGMA) president, on Monday said that their group will reduce prices by P0.50 per kilogram starting 12:01 a.m., Tuesday.

“We need to lower prices because international prices are coming down,” he added.

The latest reduction will bring down the price of the group’s 11-kilogram cooking gas cylinder to P586 from P592.

LPGMA’s price cut follows a similar reduction at the start of the month that came on the heels of a P2 per kilogram rollback in January.

Ty said that the reductions were borne out of the weakening international contract price of LPG, which is set on a monthly basis, since the start of the year.

Contract prices posted successive increases from August to December in 2009.

Analysts said that the upward movement reflects high demand during this period as the commodity is used for heating purposes in countries with cooler climates.

Ty said that LPGMA expects prices to go down further in March, which would allow them to advance their price cuts this month.

“Perhaps another [P0.50 per kilogram] cut next week and the week after,” he added.

LPGMA’s members include Omni Gas, Pinnacle Gas, Island Gas, Cat Gas and Nation Gas.

The oil majors were yet to announce thei price movements.