Investigate Hong Kong oil companies over profiteering, Consumer Council urges
Consumer Council calls for study of retail fuel market to examine whether oil companies have been profiteering, after it found that they had been slow to reduce prices but quick to increase them.
The Consumer Council today urged the government to launch a study of the retail fuel market to examine whether oil companies had been profiteering, after it found that they had been slow to reduce prices but quick to increase them.
A similar study – which looked at competition in the market, examined if any companies colluded in price-fixing and whether lowering fuel prices was possible – was commissioned by the government in 2005.
Council chief executive Gilly Wong Fung-han said the 2005 study contained some information that was unobtainable by the consumer watchdog but was key to help assess if any market misbehaviour such as profiteering existed.
This included the cost structures of the oil companies, data on their profit margins, and a comparison with international markets, Wong told RTHK.
The study was 10 years ago and the information needed an update, she said.
“If we want to look at whether there is profiteering, or there are other factors leading to rising costs, we should have a new study,” Wong said.
