Families using liquefied petroleum gas for cooking will have to pay an extra $13 a month following a price increase announced by Shell.
The net cost for domestic liquefied petroleum gas (LPG) cylinders increased from midnight from $6.15 to $7.13 per kilogram, while domestic piped-in LPG increased from $21.97 to $24.36 per cubic-metre. The rise affects 200,000 households.
LPG vehicles will not be affected. Shell has decided to freeze the price at $3.88 per litre.
General manager of Shell Gas (LPG) Daniel Lau Wing-sing estimated that the price rise would add an extra $13 a month on to the average family fuel budget.
He blamed import costs for the rise, adding that the LPG business in Hong Kong faced a tough operating environment. 'The market is contracting at a rate of two to three per cent a year while supply costs are increasing,' he said.
The Economic Services Bureau said pricing was a commercial decision for the company concerned and no one wanted to see any increases in prices for major fuels.
