Competition Commission targets petrol market in Hong Kong

The new competition watchdog is making the vehicle-fuel market one of its first targets for investigation, with the Environment Bureau pledging to cooperate.

"Regarding the issue of fuel prices and the market: given its importance, we have already embarked on an initial study," Anna Wu Hung-yuk, chairwoman of the Competition Commission, confirmed at a meeting of the Legislative Council's economic development panel yesterday.

The announcement followed a Consumer Council report in February that criticised petrol suppliers for being quick to raise prices as Brent crude oil became more expensive, but slow to cut them amid sharp falls in price.

Commission CEO Dr Stanley Wong told the panel the limitations of the competition law, which takes full effect this year, would reduce the body's scope to investigate. "Our powers to get information to study the market are very limited. We cannot compel a company to turn over information," Wong said.

But it would have more scope to act if it received specific complaints, he added. "If we think there's sufficient information then we can use our enforcement power to get more information … [and] get a search warrant."

Undersecretary for the environment Christine Loh Kung-wai told the panel: "At the end of the day, the commission would approach the government for further information. On this, we would definitely be cooperative."