Filipino households will pay less for cooking fuel this September as a sharp drop in freight costs more than offsets higher international liquefied petroleum gas (LPG) prices.

The Department of Energy reported on Tuesday that LPG prices will decline by around P0.40 per kilogram this month, equivalent to savings of about P4.40 for a standard 11-kilogram cylinder.

The rollback comes despite the international LPG Contract Price (CP) rising to $649.50 per metric ton in September from $634 in August.

Cheaper freight provided the biggest cushion, with costs falling to $94.41 per metric ton from $120.82.

The peso also provided some relief, with the average exchange rate improving to P61.40 against the dollar in August from P61.59 in July.

“For families who rely on LPG to prepare their meals every day, every peso saved can go toward other household needs. The reduction may be modest, but consumers should benefit whenever market conditions bring costs down,” Energy Secretary Sharon Garin said.

For September, retail prices of an 11-kilogram LPG cylinder are estimated to range from P1,031 to P1,536, depending on the brand, location and other market factors.

The DOE said the increase in international contract prices for September was driven mainly by higher crude oil prices, geopolitical tensions and supply constraints in the Middle East, as well as stronger Asian demand ahead of the winter season.

“Consumers should be able to understand what drives the prices they pay. We will continue to provide clear information on LPG price movements so households can make informed decisions and better manage their expenses,” Garin said.

To ensure product quality and safety, the DOE encouraged households to compare prevailing LPG prices in their areas and purchase only from authorized dealers and retailers.