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Guangzhou LPG suppliers ordered to refund customers

By Zhan Lisheng (China Daily)
Updated: 2008-06-25 07:24

The Guangzhou price bureau on Tuesday told three liquefied petroleum gas (LPG) suppliers to refund excessive charges they levied for three days last week without authorization.

They raised the price of LPG from Monday to Wednesday.

"The three LPG suppliers are required to implement all refunds within 15 days from today," Wang Fujun, director of the municipal price bureau's investigation branch, told China Daily yesterday.

"All three firms are willing to refund the excess charge; and anyone, as long as he or she can produce an invoice or receipt, will have that money returned with the 15-day period," Wang said.

The government will confiscate charges that cannot be refunded.

Wang said the local LPG suppliers of Sinogas, Zhenrong Gas and Lianxin, jointly raised the price to 4.73 yuan (68 cents) per liter without authorization last Monday, when the country raised the price of petrol by 0.8 yuan per liter, diesel by 0.92 yuan and electricity for commercial use by 0.025 yuan per kWh.

LPG and LNG (liquefied natural gas) were not included in the price hikes.

The three suppliers reverted to the old price on Wednesday, after provincial and municipal authorities began to investigate following complaints.

The suppliers sold more 500,000 liters of LPG during the three days, overcharging consumers, mostly taxi drivers in the city, 542,429 yuan.

Li Dongtian, a taxi driver, said he is happy the government has taken immediate action, and even happier he will get a refund.

"Though the overcharge was not too much, it was still unfair to us," Li said.

He said he had paid about 40 yuan more during the three days.

"Oil, gas and electricity are key commodities whose prices are subject to government control," Gao Yiqian, an official with the provincial price bureau of Guangdong, said. "Suppliers must strictly abide by the pricing policies set by the government."

Authorities at different levels throughout Guangdong province will keep a close watch on oil and gas prices and deal with any illegality, she said.