Shell to freeze prices of LPG

PUBLISHED : Friday, 30 July, 1999, 12:00am
UPDATED : Friday, 30 July, 1999, 12:00am

Shell announced a freeze yesterday on its domestic liquefied petroleum gas (LPG) prices for the second half of the year.

The company had initially said LPG prices for the second half would have to be raised by 95 cents a kilogram under a new pricing mechanism which tied the selling price more closely to the import price.

But Shell's director for Hong Kong and Macau, Robert Young, said it appreciated that the local economy was only starting to recover and most people were still suffering from pay freezes or cuts.

He said the company had decided to hold LPG prices until the next review in January.

The wholesale price for a cylinder of domestic LPG would remain $5.5 a kilogram while the list price for domestic piped-in LPG would be $20.39 a cubic metre.

The LPG price for vehicles would remain unchanged at $3.88 a litre until further review, he said.

An Economic Services Bureau's spokesman welcomed Shell's move.

'The freeze indirectly confirms our view that LPG prices have been on the high side and that there is scope for a reduction in price.

'We will continue to monitor the situation closely and see whether there is any room for price reduction in the next review,' he said.

Secretary for Economic Services Stephen Ip Shu-kwan had said earlier that LPG rates were too high considering the plummeting price of imports.