Advertisement
Advertisement

Two-pronged attack as fourth oil company announces price rise

A fourth oil company raised petrol prices last night, drawing rebukes from the Government and the Consumer Council.

Caltex said it was increasing charges by between 1.5 per cent and 1.6 per cent - 20 cents to 30 cents per litre - from tomorrow .

Caltex said the rise was the result of the rising cost of oil and high demand in consumer markets. It said the price of crude oil had risen by 30 per cent since September.

This week, China Resources Company, Mobil and Esso raised their prices.

However, a Consumer Council spokesman questioned why the companies increased charges when their costs rose but ruled out price cuts in November 1998 when crude oil prices were on the decrease.

'The council expects that when these prices go down, there would be a corresponding decrease,' he said.

A government spokesman said increases were not welcome in the present economic climate. The companies were urged to take into account long-term cost fluctuations before passing rises on to the consumer.

Oil companies have been under pressure to lower prices since a Consumer Council report this month hit out at the industry 'oligopoly' and said prices here were among the highest in the world. Legislators on Monday called for a price cut, but oil companies refused and urged the Government to reduce the tax on fuel.

Caltex Oil Hong Kong general manager Albert Kwok said: 'There is absolutely no room for further reduction'.

It was announced yesterday that the price of liquefied petroleum gas is to increase.

Shell said it would raise charges by more than 60 cents per kg, meaning an average family of four could pay $9 a month more.

Rosita Lui Ming, Shell Gas manager, said the move was to cover losses sustained in the past six months.

'Our list price has actually dropped by 30 cents per kg since gas import prices are forecast to fall.

'But at the same time the special discount offered for the past six months will expire. To consumers, it is a fact that they will have to pay 65 cents more per kg,' she said.

A Consumer Council spokesman said Shell's pricing method was confusing.

Post