XN000022-1991-10-30 — Page 2

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WEDNESDAY, OCTOBER 30, 1991

GOVT MONITORS EFFECT of ULP WITH 98 OCTANE LEVEL

THE AT

NOT READILY UNLEADED PETROL (ULP) WITH OCTANE LEVEL OF 98 WAS AVAILABLE FOR SUPPLY TO HONG KONG WHEN PREPARATIONS WERE MADE FOR FIRST INTRODUCTION OF ULP AND THEREFORE WAS NOT A PRACTICAL OPTION THAT MOMENT.

FOR

PLANNING,

IN A WRITTEN REPLY TO A THE LEGISLATIVE COUNCIL TODAY

THIS WAS STATED BY THE ACTING SECRETARY

LEUNG, BOWEN ENVIRONMENT AND LANDS, MR QUESTION FROM THE HON MOSES CHENG IN (WEDNESDAY).

PER CENT OF ALL EXISTING OCTANE LEVEL OF 95 AND

MR LEUNG POINTED OUT THAT SOME 77 PETROL CARS COULD RUN PROPERLY ON ULP WITH VIRTUALLY ALL NEW CARS WERE DESIGNED TO BE ABLE TO RUN SMOOTHLY ON IT.

APPROPRIATE TO INTRODUCE FROM "IT WAS, THEREFORE, FELT MORE THE BEGINNING THIS GRADE OF PETROL WHICH WOULD PROVIDE FOR THE OPTIMUM LONG-TERM FUEL REQUIREMENTS OF HONG KONG.

OIL COMPANIES AND THEY "DISCUSSIONS WERE ALSO HELD WITH THE AGREED THAT THE GRADE OF ULP WHICH SHOULD BE PROVIDED OUGHT TO BE 95," MR LEUNG SAID.

OIL

UNLEADED PETROL, ON THE PRICE DIFFERENTIAL BETWEEN LEADED AND MR LEUNG SAID THERE HAD NOT BEEN ANY FORMAL AGREEMENT BETWEEN THE COMPANIES AND THE GOVERNMENT.

"HOWEVER, THE

UNLEADED PETROL,

ΤΟ

UNDERSTANDING

ENCOURAGE

AT A REACHED

SHORTLY MEETING THE GOVERNMENT WOULD APPLY A BEFORE THE LAUNCHING OF ULP WAS THAT

BETWEEN LEADED AND REVENUE-NEUTRAL DUTY DIFFERENTIAL OF 45 CENTS AS

AND THE OIL USAGE OF UNLEADED,

ABOUT COMPANIES WOULD CHARGE 56 CENTS MORE ON LEADED PETROL, BRINGING

MORE EXPENSIVE THAN A COMBINED EFFECT OF MAKING LEADED PETROL $1.01 ULP.

"THE OIL COMPANIES ALSO AGREED THAT CENTS ON LEADED PETROL WHEN THE TOTAL INVESTMENT WAS RECOVERED, HE ADDED.

+

THEY

WOULD DROP THE 56 ON INTRODUCING ULP

UNDERSTANDING

LEVEL OF 98 WAS NOT

REACHED, WAS

THE

HE POINTED OUT THAT AS ULP WITH OCTANE CONSIDERED AS AN

WHEN OPTION

THE PROVISIONS WERE NOT APPLICABLE TO IT.

DIFFERENTIAL AS BETWEEN UNLEADED ΤΟ BOTH GRADES OF

THE UNLEADED

HOWEVER, THE 45 CENTS DUTY

AND LEADED PETROL WAS PRODUCT, MR LEUNG SAID.

APPLICABLE

HE ADDED THAT THE GOVERNMENT WAS SATISFIED WITH OF ULP, WHICH WAS AT ABOUT 46 PER CENT.

CURRENT USAGE

"THERE ARE INDICATIONS THAT 98 SINCE ITS INTRODUCTION.

ULP IS INCREASING ULP USAGE

THE EFFECT "NEVERTHELESS, THE GOVERNMENT WILL CLOSELY MONITOR

INTO CONSIDERATION, AMONG OF THE INTRODUCTION OF 98 ULP AND TAKE IT

tr HE OTHER FACTORS, IN REVIEWING THE PRICE DIFFERENTIAL IN DUE COURSE,' SAID.

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