The Consumer Council welcomes the announcement made by Shell today on the price reductions for unleaded petrol, diesel and kerosene, effective from mid-night 24 December 1998, following reductions in import prices. The Council trusts that all oil companies will be taking action to pass any cost savings on to consumers as soon as possible.
The Council stated in its submission to the LegCo Panel on Economic Services in November this year, when the Panel examined pricing of petroleum products, that the Council was particularly concerned with the prices for LPG. The Council notes that prices for this product have not been reduced.
In discussions with the Council, Shell stated it would be reviewing prices for LPG in the new year. In view of the significant drop in import costs early this year, the Council considers that savings similar to those relating to petrol, diesel and kerosene must also be passed on to consumers.
As to whether the price reductions are reasonable, the Council will be considering the matter in line with its monitoring work when adequate information becomes available at a later date from the Census and Statistics Department.