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Press Release
Pricing mechanism for dedicated LPG filling stations
The Environmental Protection Department (EPD) and the Electrical and Mechanism Services Department today (January 9) met the representatives from the Motor Transport Workers General Union to listen to their views on the pricing adjustment mechanism for dedicated liquefied petroleum gas (LPG) filling stations.
A spokesman for the EPD said that under the new pricing adjustment mechanism, the two determining factors of the LPG Pricing Formula (international prices and operating costs proposed by the operations) would remain unchanged.
"What will be changed will be the adjustment frequency, i.e. from once every six months to once a month. This change will not add to the operating costs of professional drivers," he added.
Under the new mechanism, the operators of dedicated LPG filling stations have to adjust LPG ceiling price according to the movement of LPG international price. It is not possible, therefore, for companies to increase prices quickly and lower prices slowly.
The spokesman said that international LPG prices would be announced monthly so that the transport trade could monitor the price adjustment of the dedicated stations.
The Government would also conduct meetings with the operators of the dedicated LPG filling stations and transport trade every three months in the future to listen to their views.
The Government plans to introduce the new mechanism on February 1 so as to solve the queuing problem at dedicated LPG filling stations.
"When the new mechanism is implemented, the price of LPG dedicated filling stations will be adjusted according to the changes of the international LPG prices for the immediate past month," the spokesman said.
Ends/Monday, January 09, 2006
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