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The average retail price of LPG dropped 2 yuan to 103 yuan (US$12.6) per 14.5kg a cylinder in Guangdong Province after the province price watchdog took intervention measures and more gas was transported to the province.

The wholesale price of LPG has been controlled at 6,500 yuan per ton since Jan. 18, a 200 yuan drop from earlier this month. Though the prospect is not clear, with more gas from outside the province, the gas supply in the province is becoming stable for the lunar New Year festival, the Guangzhou Daily quoted sources from the price bureau.

The price bureau's monitoring results indicate Guangdong consumes around 15,000 tons a day. In the coming days, around 45,000 tons of LPG will arrive at Guangzhou, Shenzhen, Zhuhai, Yangjiang and Shantou ports, adding 800 tons to the daily routine from other provinces. In addition, the province's three oil refinery plants can provide 2,000 tons of LPG every day.

In Xuwen, southwestern part of Guangdong, the LPG price was sold at 120 yuan per cylinder, while in urban area of Jiangmen City, the gas was sold at 93 yuan.

Ma Zhuangcang, chief of the price bureau, said the provincial government would timely adjust the price of LPG to avoid fluctuation. He said the present situation was not clear as 70 percent of LPG consumed in the province is imported, and the price is also influenced by the import volume. In the international market, LPG was sold at US$68 per barrel and would possibly increase to US$70 in the near future, Ma said.

(Shenzhen Daily January 27, 2006)