Law 34/1998 of 7 October of the Hydrocarbons Sector establishes, in its fourth transitional provision, that the Government may establish maximum sales prices to the public of liquefied petroleum gases as long as 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 LPG's packaged that it caters to conditions of seasonality in the markets.

Following the ministerial restructuring contained in Royal Decrees 557/2000 of 27 April 2000; 574/2000 of 5 May; 683/2000 of 11 May 2000 and 689/2000 of 12 May 2000, these powers remain within the scope of the Ministry of Economy.

The Order of 6 October 2000 establishes the system of automatic determination of maximum sales prices, before taxes, of liquefied petroleum gases in their packaging. The third point of the aforementioned order determines that the marketing costs will be updated annually by Order of the Ministry of Economy, with the agreement of the Government Delegation for Economic Affairs.

According to the provisions of the additional provision of Law 34/1998 of 7 October of the Hydrocarbons Sector, the National Energy Commission has issued a corresponding report on this provision.

In order to comply with the annual update of the marketing costs, prior to the Agreement of the Government Delegated Committee for Economic Affairs at its meeting of 21 March 2002, I have:

First. -Maximum sales prices to the public, before taxes, of liquefied petroleum gases (LPG) packaged, in containers of capacity equal to or greater than 8 kilograms of LPG's content, used as fuels or Fuels for domestic, commercial and industrial uses shall be determined in accordance with the provisions of this Order. The prices of LPG's packed in containers of less than 8 kilograms are free.

Second. -Maximum sales prices to the public, before taxes, of the LPG's packaged to what it does

reference the first paragraph shall be determined by the following formula:

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i=n-13

R i=n-2 (0.8 Cbut, i + 0.2 Cpro, i + Fi) /ei 1000

P = +

12

+ merchandising costs

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 = Monthly monthly dollar/metric tonne of low and high freight rate Rass Tanur a-M e d i t e r a n e o p a r a b u q u e s d e 54,000-75,000 cubic metres, published in the "Poten and Partners" corresponding to the month i.

ei = Monthly dollar/euro exchange rate published in the 'Official Journal of the State' or by the European Central Bank for the month i.

n = First month of application of new prices.

The marketing costs collect all the costs necessary to make the product available to the consumer, including those for the home distribution.

Third. -The marketing costs, are set at 0.317624 euros/kilograms and can be updated annually by Order of the Minister of Economy, prior to the Agreement of the Government Delegation for Economic Affairs, taking into account the foreseeable development of the costs of the sector and of productivity.

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 taxes the consumer is subject to the tax regime and those applicable in general in the rest of the national territory, on the basis of specific local factors which justify differences in the marketing costs.

Fourth. -The maximum prices determined in accordance with the procedure laid down in the preceding paragraphs of this Order do not include taxes on the consumer, which shall be included separately in the corresponding invoices.

Fifth. -On a half-yearly basis and for its implementation from 1 April and October, the Director General of Energy Policy and Mines of the Ministry of Economy will carry out the calculations for the implementation of the the system set out in the preceding paragraphs of this Order, and shall dictate the relevant Resolutions for the determination of the maximum prices to be published in the Official Gazette of the State.

Sixth. -From the zero hours of the day of entry into force of this Order, and as long as it is not modified by the Resolutions of the Director General of Energy Policy and Mines referred to in the fifth paragraph of This Order, the maximum selling price before tax, for the application of liquefied petroleum gas supplies, in containers of capacity equal to or greater than 8 kilograms of LPG content, shall be EUR 0,591207 per kg the entire national territory, except as provided for in the third subparagraph for the Autonomous Community of Canary Islands.

Seventh.-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 orders -corresponding 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.

8. The Order of 6 October 2000 establishing the system for the automatic determination of maximum sales prices, before tax, of liquefied petroleum gases in their packaging and packaging is hereby repealed. any provisions of equal or lower rank which are contrary to the provisions of this Order.

Ninth. This Order shall enter into force on the day following that of its publication in the "Official Gazette of the State".

What I communicate to V. E. for its knowledge and effects.

Madrid, 22 March 2002.

HANGING OUT AND FIGAREDO

Excmo. Mr Secretary of State for Economic Affairs, Energy and Small and Medium-sized Enterprises.