PETROPERU clarifies that it has no influence in determining the price of LPG

In light of journalistic versions about the supposed participation of PETROPERU in the determination of the price of liquefied petroleum gas (LPG), we clarify that:

1. PETROPERU currently has a 15% share in the LPG market, acting as a wholesale distributor, a situation that makes it impossible for it to operate as a reference entity for the definition of the prices of this product in the country.
2. Likewise, since January 2020, the Company has not produced LPG since the Talara Refinery is out of service to complete the PMRT work. While this project is being concluded, the Callao Plant is meeting the demand for LPG with purchases made from the main producer in the local market, the PLUSPETROL company; and, in the case of Talara, the demand is met with imports.
3. For this reason, PETROPERU currently determines the sale price of LPG in Callao based on the acquisition cost that is reached by PLUSPETROL on a weekly basis, plus the logistics costs of storage and dispatch, as well as the discounts granted to customers; and, finally, a marginal profitability is included. In this sense, the sale price of the LPG marketed by PETROPERU maintains a slight difference of 0.03 Soles/Kg with respect to the price of the main local supplier, PLUSPETROL, as shown in the following table:

(*) PETROPERÚ average prices in Callao considering discount, without legal taxes.

4. It is worth mentioning that, in the face of the global crisis caused by COVID-19, the MINEM –through Supreme Decree 007-2020-EM– suspended from April 28, 2020 the application of the Fuel Price Stabilization Fund (FEPC) in the bottled LPG and Diesel B5/Diesel B5 S-50 fuels for vehicular use and electricity generation; because such inclusion prevented price reductions from being made for the final consumer. In this sense, PETROPERÚ declares that it is always attentive to the provisions of the Peruvian State in relation to the administration of the FEPC, given the price increases that have been occurring in the international market.