Opinion | Petrol prices reflect why watchdog needs to show more bite

The discussion at the Legislative Council economic development panel on Monday was nothing new. It was, indeed, awfully similar to what we had heard for years under the British colonial government. What set it apart is that the toothless advisory body monitoring the oil market and other anticompetitive business practices has since been replaced by a statutory watchdog with legal power. It is a sad reminder that the situation has not much improved. Not only has it done nothing for the authority of a watchdog set up to promote fair trade, it also calls into question the monitoring role of the government.

The commission’s report in 2018 was unable to say whether there was evidence of price fixing. This was largely due to its limited power in obtaining sensitive price information. Reporting on her work for the last time following a seven-year stint, outgoing commission chairwoman Anna Wu Hung-yuk described it as a “market failure”. She said the government was in a position to seek more information from oil companies, and added the watchdog stood ready to take legal action when there was sufficient evidence of market manipulation.

Assuring as it sounds, the bark of the watchdog has been seen to be worse than its bite. It was not until last year that the Competition Tribunal handed down judgments in the first two cases lodged by the fair-trade body. While there have been studies and advice on different trade practices over the years, it is still not getting the recognition it deserves.

Having served the commission as a member since 2016, new chairman Samuel Chan Ka-yan is well positioned to take up the challenge. While the commission is expected to step up enforcement action, it should take on bigger tigers to show its teeth. This will help enhance public recognition and support of its work, without which it cannot effectively fulfil its statutory role.