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    The Government announced today (July 30) a slight adjustment in the range of ceiling prices of motor liquefied petroleum gas (LPG) for dedicated LPG filling stations from August 1, 2005 to January 31, 2006. 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 new ceiling prices would range from $2.42 to $2.79 per litre which represents an increase of $0.01 per litre. The ceiling prices are adjusted according to 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 existing ceiling prices of $2.41 per litre to $2.78 per litre at the dedicated stations were adjusted on February 1, 2005 according to the average LPG international price from July to December 2004 and movement in the Composite Consumer Price Index in 2004. The slight increase is due to movement in the LPG international price from January to June 2005 in comparison with July to December 2004.

    The spokesman 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.

    The following are the ceiling prices for respective dedicated LPG filling stations effective from August 1, 2005 to January 31, 2006.

Location of Dedicated LPG                    Motor LPG
Filling Station                              Ceiling Price
                                          (1/8/2005 to 31/1/2006)

Fung Yip Street, Chai Wan &                  HK$ 2.79/lit
Ngo Cheung Road, West Kowloon

Fung Mat Road, Sheung Wan;                   HK$ 2.51/lit
Wai Lok Street, Kwun Tong &
Yuen Chau Tsai, Tai Po

Sham Mong Road, Mei Foo &                    HK$ 2.56/lit
Yip Wong Road, Tuen Mun

Cheung Yip Street, Kowloon Bay &             HK$ 2.54/lit
Kwai On Road, Kwai Chung

Marsh Road, Wan Chai                         HK$ 2.56/lit

Hang Yiu Street, Ma On Shan &                HK$ 2.42/lit
Tak Yip Street, Yuen Long

Ends/Saturday, July 30, 2005

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