LPG prices set to rise

PUBLISHED : Friday, 28 July, 2006, 12:00am
UPDATED : Friday, 28 July, 2006, 12:00am

Updated at 6.35pm:
The Electrical and Mechanical Services Department on Friday said that the fuel price ceiling at dedicated liquefied petroleum gas (LPG) filling stations would rise an average 14 cents per litre next month.

A department spokesman said LPG at 12 dedicated filling stations would cost between $2.89 and $3.26 per litre.

The adjustment, which would take effect from August 1 to 31, represented an increase of about 14 cents per litre from present levels.

The spokesman said the adjustment would reflect this month?s prices for LPG on the international market.

Earlier this year, the government implemented a new pricing formula for dedicated LPG filling stations, allowing price reviews every month instead of twice a year.

Under the old pricing formula, LPG prices at 12 dedicated filling stations operated by CRC and ECO Energy were reviewed on February 1 and August 1 to reflect the price average of the previous six months.

Drivers are unhappy with the new system, saying it jeopardises their financial plans and might encourage price increases.