LPG ceiling prices will rise 64 cents per litre in March, the Electrical & Mechanical Services Department says, adding the newly adjusted prices will range from $3.41 to $3.79 per litre.

This is the first adjustment, to reflect the movement of LPG international price in February, according to the new monthly adjustment mechanism.

The pricing formula comprises two elements, namely LPG international price and operating price. The LPG international price will be adjusted according to movement in the LPG international price in the previous month.

The operating price will be adjusted on the first day of February every year according to movement in the Composite Consumer Price Index in the previous year.

Under the monthly adjustment mechanism the operators of dedicated LPG filling stations should raise or lower their auto LPG pump prices on a monthly basis according to the movement of LPG international prices. The operators cannot raise pump prices quickly and lower prices slowly.

The department pointed out that the actual auto LPG pump price at a dedicated LPG filling station might be lower than the auto LPG ceiling price, depending on the decision of the respective operator based on market conditions.