Diesel Prices Hit Record HK$38/Litre as Oil Companies Accused of Price Gouging
On.cc · 1 SOURCESabout 3 hours ago6 MIN
Summary
Hong Kong's diesel prices reached a historic high of HK$38.43 per litre in late September, despite international crude oil prices falling sharply, sparking outrage among transport operators and accusations of price gouging against oil companies. Commercial vehicle operators, including non-franchised buses and tour bus services, are facing nearly doubled fuel costs compared to previous levels, with some small operators already forced to close. Industry representatives and legislators have written to the government demanding the relaunch of fuel subsidies and investigation into the widening gap between local and international prices.
Key Points
- Diesel price peaked at HK$38.43 per litre on September 30, surpassing April's wartime high of HK$36 per litre
- Brent crude oil reference price has fallen to approximately HK$5.16 per litre, yet local prices continue rising
- New Ferry Tours (新輝旅運) Managing Director Cheung Ying-fat (張英發) reports monthly fuel costs surged from HK$300,000 to HK$500,000-600,000
- Jet Express (捷迅旅運) Executive Director Kwok Si-yuen (郭思源) states the industry is operating at a loss, with some operators unable to afford vehicle payments
- The government previously provided a two-month HK$3 per litre subsidy in April, but critics note oil companies raised prices by HK$4 immediately after
- Transport contracts for school buses, village buses, and employee services typically run 2-3 years at fixed prices
- Legislator Chong Ho-fung (莊豪鋒) has jointly written to the government demanding renewed fuel subsidies for transport, construction, and laundry sectors
- Shuttle Bus platform (租租巴) representative Tsang Kin-wai (曾建威) criticized the government for inaction after the temporary subsidy expired
- The Environmental and Ecological Bureau stated it is continuously monitoring Middle East developments and fuel supply through an inter-departmental task force
- Since April, the government has published weekly comparisons of fuel prices against international benchmarks
Why It Matters
The disconnect between falling international oil prices and rising local diesel prices threatens the viability of Hong Kong's commercial transport sector, which provides essential services including school buses, village buses, and employee transport. Small operators unable to pass on increased costs face closure, potentially disrupting services for thousands of residents while raising questions about whether fuel pricing mechanisms adequately protect consumers and small businesses in the city.
The disconnect between falling international oil prices and rising local diesel prices threatens the viability of Hong Kong's commercial transport sector, which provides essential services including school buses, village buses, and employee transport. Small operators unable to pass on increased costs face closure, potentially disrupting services for thousands of residents while raising questions about whether fuel pricing mechanisms adequately protect consumers and small businesses in the city.