Gas cylinder prices rise in Lima again: A new increase is reported this October 31st

Another blow for Peruvian families. Gas cylinder prices are rising in Lima. Following reports from media outlets such as 24 Horas, it has been revealed that the price of a gas cylinder rose by approximately S/2.50 this October 31, and costs are expected to remain higher throughout the month of November. Infobae Perú also consulted distributors and found that a price increase of around S/1.50 is being reported in districts such as Santiago de Surco compared to previous month's values. On ATV, the former Director of Hydrocarbons from the Ministry of Energy and Mines (Minem), Erick García, explained that this is due to the increase in international prices. How much is a gas cylinder? According to the 24 Horas report, various suppliers announced that the cost of the gas cylinder will increase, information the outlet obtained by visiting several distributors. Thus, starting October 31, there would be a S/2.50 increase in the gas cylinder; this comes despite the fact that prices had already increased in October. Just one week ago, there were two hikes: an initial one of S/2.00, followed by another S/2.50. The price of a gas cylinder, depending on the district, could have cost from S/55; now the price ranges from S/57 up to S/65 (the price reported in Santiago de Surco). What is causing the increase? Erick García explained on ATV that Peru went from importing around 30% of the LPG it consumed to depending on foreign sources to cover nearly 46% of its demand. Thus, he noted that the reference price of the fuel rose from S/3.13 per kilo on October 21 to S/3.96 soles on October 30 (including VAT). This represents an approximate increase of 26%. With that reference price, a 10-kilo cylinder in raw materials, including taxes and leaving the Pisco plant, costs nearly S/40, the expert noted. However, transportation, packaging, and marketing expenses must be added to this amount, meaning the final price would vary between S/56 and S/60. Now, as seen, this price can reach up to S/65 in districts like Santiago de Surco. Where to check the gas price? Did you know there is an app to check gas cylinder prices by zone? “Consumers can find out where to buy fuels (gasoline, diesel, vehicular LPG, vehicular natural gas) at the best price, thanks to Osinergmin's Facilito application, available for iPhone and Android smartphones and on the website www.facilito.gob.pe,” the Government points out. Thus, this tool offers information regarding the retail prices of all formal gas stations, as well as their geographic location, so that users can choose the most convenient one. It is important to remember that according to the General Hydrocarbons Law in Peru, fuel prices are market-driven. With Facilito, Osinergmin seeks to promote price transparency and provide information to users so they can make better purchasing decisions, thereby encouraging competition among gas stations. “All formal fuel marketers are required to report updates to their sales prices in Facilito. Likewise, Osinergmin periodically verifies that these businesses offer the same prices at the point of sale as they reported in the web system. In this way, users can have reliable information for their purchasing decision,” it clarifies. Additionally, Osinergmin supervises all formal fuel businesses to ensure they comply with safety conditions and that the fuel offered is of quality and in the exact quantity for which the user pays.