Existing Pricing Adjustment Mechanism for Auto-LPG at Dedicated LPG Filling Stations

The existing 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 price (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 LPG operating price (B) is fixed throughout the existing contractual period.

Pricing Adjustment Mechanism for Auto-LPG at Dedicated LPG Filling Stations on 1 July 2023 onwards

The new contracts for dedicated LPG filling stations were awarded in May 2021 and would take effect in phases between September 2021 and mid-2023. Details of the new contracts, including the information of the new operators and contractual period, were listed in the EMSD’s webpage. The operators under the new contracts are required to adopt the existing pricing adjustment mechanism and LPG operating price (with yearly adjustment upon C) till 30 June 2023. Starting from 1 July 2023, the new pricing adjustment mechanism and LPG operating price would be adopted.

Under the new pricing adjustment mechanism, the pricing formula for the LPG ceiling price (P), P = A + B , continue to be based on the two main elements, namely LPG international price (A) and LPG operating price (B). The only change is that the yearly adjustment of LPG operating price (B) will cover not only the year-on-year rate of change of the Composite Consumer Price Index (C), but also the year-on-year change of the Nominal Wage Index (N) , i.e. the change of the LPG operating price would be calculated by 0.5 x (C+N). The change of the pricing adjustment mechanism can better reflect the variation of the operating cost.

The LPG ceiling price adopted on 1 July 2023 will be calculated based on the bided LPG operating price accepted under new contract with the adjustment upon the rate of change of the Composite Consumer Price Index and Nominal Wage Index in 2021 and 2022.

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, are as follows:

 

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 Indices are as follows:

 

3) Ceiling price of LPG

The calculated LPG ceiling prices (HK$/litre) for respective dedicated LPG filling stations are as follows:

Remark: The pricing formula, which determines the LPG ceiling price for dedicated LPG filling stations, 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. Since the LPG operating prices of dedicated LPG filling stations are different, there will be differences in the LPG ceiling prices at these stations.

Adjustment of Auto-LPG Ceiling Prices for Dedicated LPG Filling StationsThe monthly adjusted LPG ceiling prices for dedicated LPG filling stations, which took effect from March 2006, can be accessed through the links below:

  1. LPG ceiling prices for dedicated LPG filling stations from 3/2006 to 12/2006 (Archive) [PDF format (52KB)]
  2. LPG ceiling prices for dedicated LPG filling stations from 1/2007 to 12/2007 (Archive) [PDF format (60KB)]
  3. LPG ceiling prices for dedicated LPG filling stations from 1/2008 to 12/2008 (Archive) [PDF format (60KB)]
  4. LPG ceiling prices for dedicated LPG filling stations from 1/2009 to 12/2009 (Archive) [PDF format (47KB)]
  5. LPG ceiling prices for dedicated LPG filling stations from 1/2010 to 12/2010 (Archive) [PDF format (30KB)]
  6. LPG ceiling prices for dedicated LPG filling stations from 1/2011 to 12/2011 (Archive) [PDF format (50KB)]
  7. LPG ceiling prices for dedicated LPG filling stations from 1/2012 to 12/2012 (Archive) [PDF format (32KB)]
  8. LPG ceiling prices for dedicated LPG filling stations from 1/2013 to 12/2013 (Archive) [PDF format (56KB)]
  9. LPG ceiling prices for dedicated LPG filling stations from 1/2014 to 12/2014 (Archive) [PDF format (61KB)]
  10. LPG ceiling prices for dedicated LPG filling stations from 1/2015 to 12/2015 (Archive) [PDF format (97KB)]
  11. LPG ceiling prices for dedicated LPG filling stations from 1/2016 to 12/2016 (Archive) [PDF format (97KB)]
  12. LPG ceiling prices for dedicated LPG filling stations from 1/2017 to 12/2017 (Archive) [PDF format (97KB)]
  13. LPG ceiling prices for dedicated LPG filling stations from 1/2018 to 12/2018 (Archive) [PDF format (108KB)]
  14. LPG ceiling prices for dedicated LPG filling stations from 1/2019 to 12/2019 (Archive) [PDF format (76KB)]
  15. LPG ceiling prices for dedicated LPG filling stations from 1/2020 to 12/2020 [PDF format (91KB)]

4) Movements of LPG international prices and average LPG ceiling prices of dedicated LPG filling stations

 

[PDF format (KB)]