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The Government announced today (July 30) the upward adjustment of ceiling prices of motor liquefied petroleum gas (LPG) for dedicated LPG filling stations for the period from August 1, 2004 to January 31, 2005. This is a six-monthly exercise according to the terms and conditions for the award of the contracts for dedicated stations.

A Government spokesman said that in this exercise, the ceiling prices would go up by 16¢F to 17¢F per litre, and the new ceiling prices would range from $2.08 to $ 2.45 per litre. The ceiling prices are adjusted based on a specified pricing formula.

The formula comprises two elements, namely LPG international price and LPG operating price. The LPG international price will be adjusted on the first day of both February and August every year by the average LPG international price in the preceding six months, viz. July to December and January to June respectively. The LPG operating price will be adjusted on the first day of February every year according to movement in the Composite Consumer Price Index in the previous year.

The previous ceiling prices of $1.91 per litre to $2.28 per litre at the dedicated stations were adjusted on February 1, 2004 according to the average LPG international price from July to December 2003 and movement in the Composite Consumer Price Index in 2003. The present increase in the ceiling prices is due to the continual rise and high standing of the LPG international price from January to June 2004.

He pointed out that the actual selling price of motor LPG at a dedicated station might be lower than the ceiling price, depending on the decision of the respective contractor based on market condition.

Below are the ceiling prices for respective dedicated LPG filling stations effective from August 1, 2004 to January 31, 2005.

Location of Dedicated LPG Motor LPG

Filling Station Ceiling Price

(1/8/2004 to 31/1/2005)

Fung Yip Street, Chai Wan & HK$ 2.45/lit

Ngo Cheung Road, West Kowloon

Fung Mat Road, Sheung Wan; HK$ 2.17/lit

Wai Lok Street, Kwun Tong &

Yuen Chau Tsai, Tai Po

Sham Mong Road, Mei Foo & HK$ 2.22/lit

Yip Wong Road, Tuen Mun

Cheung Yip Street, Kowloon Bay & HK$ 2.21/lit

Kwai On Road, Kwai Chung

Marsh Road, Wan Chai HK$ 2.22/lit

Hang Yiu Street, Ma On Shan & HK$ 2.08/lit

Tak Yip Street, Yuen Long

The next adjustment of the ceiling prices for dedicated LPG filling stations is scheduled on February 1, 2005, again based on the pricing formula specified in each contract.

End/Friday, July 30, 2004

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