New pricing adjustment mechanism for Dedicated LPG Filling Stations to be introduced on February 1
The Electrical and Mechanical Services Department announced today (January 27) that a new pricing adjustment mechanism would be introduced for dedicated liquefied petroleum gas (LPG) filling stations from February 1, 2006. The LPG ceiling prices of dedicated LPG filling stations will be adjusted monthly according to the pricing formula.
Under the new pricing adjustment mechanism, the two elements of the pricing formula (i.e. LPG international price and LPG operating price) will remain unchanged. Only the adjustment frequency of LPG prices at dedicated stations is changed from once every six months to once a month. A department spokesman pointed out that under the new mechanism the operators of dedicated stations should raise or lower their LPG pump prices on a monthly basis according to the movement of LPG international prices. The operators cannot raise pump prices quickly and lower prices slowly.
The spokesman said that February 1, 2006, would be the last price adjustment according to the existing mechanism (to reflect the movement of LPG international prices from July, 2005, to December, 2005, and the change of Composite Consumer Price Index in 2005). The new pricing adjustment mechanism will be introduced on the same date so that the first time for calculating the LPG ceiling price according to the new pricing adjustment mechanism will be on March 1, 2006 (to reflect the movement of LPG international price in February, 2006).
The spokesman said the actual pump price of LPG at a dedicated station might be lower than the ceiling price, depending on the decision of the respective operator based on market conditions.
The following are the LPG ceiling prices for respective dedicated LPG filling stations from February 1, 2006, to February 28, 2006.
Location of Dedicated LPG Ceiling Price
LPG Filling Station
Fung Yip Street, Chai Wan HK$ 3.15/litre
Ngo Cheung Road, West Kowloon HK$ 3.15/litre
Sham Mong Road, Mei Foo HK$ 2.92/litre
Yip Wong Road, Tuen Mun HK$ 2.92/litre
Marsh Road, Wan Chai HK$ 2.91/litre
Fung Mat Road, Sheung Wan HK$ 2.87/litre
Wai Lok Street, Kwun Tong HK$ 2.87/litre
Yuen Chau Tsai, Tai Po HK$ 2.87/litre
Cheung Yip Street, Kowloon Bay HK$ 2.90/litre
Kwai On Road, Kwai Chung HK$ 2.90/litre
Hang Yiu Street, Ma On Shan HK$ 2.77/litre
Tak Yip Street, Yuen Long HK$ 2.77/litre
From now on, the department will announce LPG international price and LPG ceiling price of each dedicated station on a monthly basis so the trades can monitor the price adjustment at dedicated stations. Quarterly meeting among the operators of dedicated stations and the LPG vehicle trades will also be arranged to gather feedbacks on the operation of dedicated stations.
Details of auto-LPG prices are also uploaded onto EMSD website http://www.emsd.gov.hk.
Ends/Friday, January 27, 2006