Oil price surge may be passed on to Hong Kong consumers, industry chiefs warn
Government says it has contacted major oil companies to closely monitor the impact of international fuel prices on Hong Kong market
Some Hong Kong industries have warned that surging fuel prices due to the war in the Middle East could hinder their recovery and be passed on to consumers, even as authorities are communicating with local oil companies to monitor the effects locally.
Oil markets have been volatile since the United States and Israel jointly attacked Iran at the end of February, forcing Persian Gulf producers to cut output and effectively closing the strategic Strait of Hormuz, where 20 per cent of the world’s supply passes.
The price of Brent crude, an international benchmark, shot up to nearly US$120 a barrel on Monday, the highest since 2022, before settling back to around US$90. Before the war, it had been trading in the low- to mid-US$70s.
In Hong Kong, public pressure is growing over what has been described as “unfair” and “premature” fuel price increases made before the city used up its stock. Meanwhile, the transport sector is considering a temporary surcharge to offset rising costs.
As of 5pm on Tuesday, pump prices at most stations remained unchanged from Monday, with regular petrol at HK$30.59 and premium at HK$32.39, according to the Consumer Council’s Oil Price Watch.