Law 34/1998 of 7 October of the Hydrocarbons Sector establishes, in its fourth transitional provision, that the Government may establish the maximum prices for the sale of liquefied petroleum gases to the public, while the conditions of competition and competition in this market are not considered sufficient.

The Royal Decree-Law 15/1999 of 1 October, approving measures of liberalization, structural reform and increased competition in the hydrocarbon sector, says in its article 5.2 that the Minister of Industry and Energy, through ministerial order, with the agreement of the Commission Delegation of the Government for Economic Affairs will establish a system of fixing of maximum prices of the liquified gases of the oil packaged that it caters to conditions of seasonality on the markets. Order ITC/2475/2005 of 28 July 2005 establishes the system of automatic determination of maximum sales prices, before taxes, of liquefied petroleum gases, in their packaging mode. The third point of the aforementioned order determines that the marketing costs may be updated annually by order of the Minister of Industry, Tourism and Trade, with the agreement of the Government Delegation for Economic Affairs. The purpose of this order is to comply with the annual update of the marketing costs, which form part of the formula for the calculation of the abovementioned maximum price. On the other hand, the calculation of the value of the international variables (raw material and freight) will be carried out for the third quarter of the current year as provided for in the final disposition of the Order ITC/2475/2005, in which it is established that the Director-General for Energy Policy and Mines, Ministry of Industry, Tourism and Trade, shall carry out the calculations for the application of the system established in that order and shall give the corresponding resolutions for the determination of prices. (a) maximum of quarterly intervals, producing effects from 1 January of the month of January, April, July and October respectively. Article 1 of the Royal Decree 1554/2004 of 25 June 2004 on the basic structure of the Ministry of Industry, Tourism and Trade assigns to this ministerial department the elaboration and implementation of the energy policy of the Government. For its part, Article 4 of Law 50/1997, of 27 November, of the Government, attributes to the Ministers the exercise of the regulatory authority in matters of their own department. The draft order has been the subject of the mandatory report of the National Energy Commission. Likewise, according to the provisions of Royal Decree 1554/2004 of 25 June 2004, for which the basic organic structure of the Ministry of Economy and Finance is developed, it has been informed by the Directorate General of Economic Policy. In its virtue, prior to the Agreement of the Government Delegation for Economic Affairs adopted at its meeting of 29 June 2006, I have:

First. Object and scope of application. 1. The purpose of this order is to update the marketing costs which form part of the calculation of the maximum selling prices, before taxes, of the liquefied petroleum gases packaged, as well as the updating of the value of the international variables (raw material and freight) for its implementation during the third quarter of the current year.

2. The system for determining the maximum selling prices to the public, before tax, laid down in this order shall apply to liquefied petroleum gases packed in containers of capacity equal to or greater than 8 kilograms of such gases, used as fuels or fuels for domestic, commercial and industrial uses. The prices of liquefied petroleum gases packed in containers of less than 8 kilograms are free. Second. Formula for the determination of the maximum selling prices, before tax. -Maximum sales prices to the public, before tax, of the packaged LPG's referred to in paragraph 1 shall be determined by the following formula:

An image appears in the original. See the PDF document for this disposition.

In which:

P = Maximum price not imposed in euro/kilogram.

Cbut, i = Average of international FOB POSTINGS/contracts, in dollars per metric ton of butane in the North Sea (BPAP) and Saudi Arabia (S. Arabia) published in the Platts LPGASWIRE corresponding to month i. Cpro, i = Average of international FOB POSTINGS/CONTRACTS in dollars per metric tonne of propane in the North Sea (BPAP) and Saudi Arabia (S. Arabia) published in the Platts LPGASWIRE corresponding to month i. Fi = Average monthly in dollars/metric ton of the low and high rate of the Rass Tanura-Mediterranean freight for ships of 54,000-75,000 cubic meters, published in the "Poten and Partners" corresponding to the month i. ei = Monthly dollar/euro exchange rate published in the "Official State Gazette" or by the European Central Bank corresponding to the month i. n = First month of application of new prices.

Third. Marketing costs.

1. The marketing costs cover all the costs necessary to put the product at the disposal of the consumer, including those relating to the home distribution.

2. The marketing costs, which are fixed at EUR 0,366728 /kg, may be updated annually taking into account the foreseeable development of the costs of the sector and productivity, in order of the Minister for Industry, Tourism and Trade, Prior to the Agreement of the Government of the Government for Economic Affairs.

However, the competent authority of the Autonomous Community of the Canary Islands may establish variations in more or less on the marketing costs established up to a maximum amount equal to the difference between the (a) taxes on the consumer in the Canary Islands tax system and those applicable in general in the rest of the national territory, on the basis of specific local factors justifying differences in marketing costs.

Fourth. Tax impact.-The maximum prices determined in accordance with the second and third paragraphs of this order do not include taxes on the consumer, which will be included separately in the corresponding invoices.

First transient disposition. Determination of the maximum selling price, before tax, until the first judgment given in application of this order.

From the zero hours of the day of entry into force of this order, and as soon as it is not modified by the resolutions of the Director General of Energy Policy and Mines referred to by the final provision first of this order, the maximum selling price, before tax, of application to the supplies of liquefied petroleum gases packaged, in containers of capacity equal to or greater than 8 kilograms of content of such gases, shall be EUR 0,837188 /kg throughout the national territory, without prejudice to the provisions of paragraph 3 for the Community Autonomous de Canarias.

Second transient disposition. Supplies pending entry into force of this order.

The maximum price resulting from the application of the system set out in the preceding paragraphs of this order will be applied to the pending supplies of execution on the day of its entry into force, although the corresponding orders they have a previous date.

For these purposes, pending delivery supplies are those that have not yet been realized or are in the process of being carried out at zero hours of the day of entry into force of the above mentioned maximum price.

Single repeal provision. Regulatory repeal.

Order ITC/2475/2005 of 28 July 2005 establishing the system of automatic determination of maximum sales prices, before tax, of liquefied petroleum gases, in its packaging method, is hereby repealed. as to how many provisions of equal or lower rank are contrary to the provisions of this order.

Final disposition first. System application set in the order.

1. The Director-General for Energy Policy and Mines, of the Ministry of Industry, Tourism and Trade, shall carry out the calculations for the implementation of the system set out in this order and shall give the relevant resolutions of the maximum prices, before tax, of liquefied petroleum gases, in their packaging, to be published in the Official Gazette of the State.

2. These resolutions shall be quarterly and shall have effect from 1 January, April, July and October respectively.

Final disposition second. Entry into force.

This order will take effect the day following your publication in the "Official State Bulletin".

Madrid, 29 June 2006. -Minister for Industry, Tourism and Trade, José Montilla Aguilera