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Pricing Adjustment Mechanism for Auto-LPG at Dedicated LPG Filling Stations
The ceiling price (P) of Liquefied Petroleum Gas (LPG) at dedicated LPG filling stations comprises two elements, namely LPG international price (A) and LPG operating price (B). The ceiling price is determined by the pricing formula: P = A + B. The upward and downward movements of LPG international prices (A) are directly reflected on the pump prices at dedicated LPG filling stations. Apart from the yearly adjustment according to the year-on-year rate of change of the Composite Consumer Price Index (C) for the previous year, the operating price is fixed throughout the 21-year contractual period.
1) Movements of LPG International Price (A)
The LPG international prices (HK$/litre) used in the Pricing Formula, which are calculated from the monthly contract prices of LPG from Saudi Arabia listed in the Petroleum Argus LPG World publication, are as follows:
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2002 |
0.908 |
0.839 |
0.818 |
0.833 |
0.927 |
0.936 |
0.936 |
0.979 |
1.101 |
1.266 |
1.404 |
1.403 |
| 2003 |
1.447 |
1.580 |
1.577 |
1.350 |
0.927 |
1.025 |
1.135 |
1.135 |
1.152 |
1.093 |
1.196 |
1.339 |
| 2004 |
1.368 |
1.412 |
1.136 |
1.256 |
1.370 |
1.501 |
1.412 |
1.466 |
1.644 |
1.721 |
2.011 |
1.815 |
| 2005 |
1.587 |
1.588 |
1.633 |
1.790 |
1.810 |
1.691 |
1.712 |
1.729 |
1.881 |
2.215 |
2.343 |
2.296 |
| 2006 |
2.483 |
2.669 |
2.263 |
1.828 |
2.006 |
2.006 |
2.145 |
2.340 |
2.400 |
2.071 |
1.988 |
2.101 |
| 2007 |
2.346 |
2.258 |
2.175 |
2.324 |
2.454 |
2.608 |
2.533 |
2.571 |
2.469 |
2.817 |
3.190 |
3.756 |
| 2008 |
3.749 |
3.451 |
3.534 |
3.478 |
3.669 |
3.917 |
4.024 |
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2) Year-on-year rate of change of the Composite Consumer Price Index (C)
The LPG operating price (B) will be adjusted on the first day of February every year according to the year-on-year rate of change of the Composite Consumer Price Index (C) for the previous year. The past year-on-year rate of change of the Composite Consumer Price Indexes are as follows:
| Year |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
| Year-on-year rate of change of the Composite Consumer Price Index (C) |
-3.8% |
-1.6% |
-3.0% |
-2.6% |
-0.4% |
+1.1% |
+2.0% |
+2.0% |
3) Ceiling Price of LPG
The calculated LPG ceiling prices (HK$/litre) for respective dedicated LPG filling stations are as follows:
Dedicated LPG
Filling Station |
Year 2007 |
Year 2008 |
| Sep |
Oct |
Nov |
Dec |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Fung Yip Street,
Chai Wan |
3.71 |
3.61 |
3.96 |
4.33 |
4.89 |
4.91 |
4.61 |
4.70 |
4.64 |
4.83 |
5.08 |
5.19 |
Ngo Cheung Road,
West Kowloon |
3.71 |
3.61 |
3.96 |
4.33 |
4.89 |
4.91 |
4.61 |
4.70 |
4.64 |
4.83 |
5.08 |
5.19 |
Sham Mong Road,
Mei Foo |
3.48 |
3.38 |
3.72 |
4.10 |
4.66 |
4.67 |
4.38 |
4.46 |
4.40 |
4.59 |
4.84 |
4.95 |
Yip Wong Road,
Tuen Mun |
3.48 |
3.38 |
3.72 |
4.10 |
4.66 |
4.67 |
4.38 |
4.46 |
4.40 |
4.59 |
4.84 |
4.95 |
Marsh Road,
Wan Chai |
3.47 |
3.37 |
3.72 |
4.09 |
4.66 |
4.67 |
4.37 |
4.45 |
4.40 |
4.59 |
4.84 |
4.95 |
Fung Mat Road,
Sheung Wan |
3.43 |
3.32 |
3.67 |
4.04 |
4.61 |
4.62 |
4.32 |
4.41 |
4.35 |
4.54 |
4.79 |
4.90 |
Wai Lok Street,
Kwun Tong |
3.43 |
3.32 |
3.67 |
4.04 |
4.61 |
4.62 |
4.32 |
4.41 |
4.35 |
4.54 |
4.79 |
4.90 |
Yuen Chau Tsai,
Tai Po |
3.43 |
3.32 |
3.67 |
4.04 |
4.61 |
4.62 |
4.32 |
4.41 |
4.35 |
4.54 |
4.79 |
4.90 |
Cheung Yip Street,
Kowloon Bay |
3.46 |
3.36 |
3.70 |
4.08 |
4.64 |
4.65 |
4.36 |
4.44 |
4.38 |
4.57 |
4.82 |
4.93 |
Kwai On Road,
Kwai Chung |
3.46 |
3.36 |
3.70 |
4.08 |
4.64 |
4.65 |
4.36 |
4.44 |
4.38 |
4.57 |
4.82 |
4.93 |
Hang Yiu Street,
Ma On Shan |
3.33 |
3.23 |
3.57 |
3.95 |
4.51 |
4.52 |
4.22 |
4.31 |
4.25 |
4.44 |
4.69 |
4.80 |
Tak Yip Street,
Yuen Long |
3.33 |
3.23 |
3.57 |
3.95 |
4.51 |
4.52 |
4.22 |
4.31 |
4.25 |
4.44 |
4.69 |
4.80 |
Remark: The pricing formula determines the LPG ceiling price for dedicated stations which comprises two elements, namely the LPG international price and LPG operating price. The values of these two elements are calculated to several decimal places. According to the contract, LPG ceiling price is the sum of these two elements quoted to the nearest cent of auto LPG price. Since the LPG operating prices of dedicated LPG filling stations are different, there will be slight differences in the auto LPG ceiling price at these stations.
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