The Middle East conflict has caused oil prices to surge, significantly impacting gasoline prices in Hong Kong. According to statistics from the energy tracking data site GlobalPetrolPrices, as of 30/3, the special administrative region's average gasoline price was approximately 32 Hong Kong dollars (USD 4,1) per liter.
The rising cost of fuel has directly affected residents. Jason Kan, an independent trade consultant who owns a compact hatchback, noted that his gasoline costs have increased by more than 15% compared to before the conflict, even with member discounts. "A 15% increase certainly has a major impact, because fuel prices in Hong Kong are already very high, accounting for a relatively large proportion of residents' average income, especially compared to Taiwan and Japan," he said.
This price hike is also changing travel patterns. Kan added that rising gasoline prices encourage more people to travel to nearby cities like Shenzhen. Local media has reported in recent days that an increasing number of drivers are crossing into mainland China to refuel, where prices are only one-third of Hong Kong's.
For those whose livelihoods depend on driving, the situation is particularly challenging. Liu, a food delivery driver in the city, lamented the soaring prices, which make his job less efficient. "Gasoline prices are rising, but wages are not," he said.
Even before the Middle East conflict erupted, Hong Kong consistently faced the world's highest gasoline prices. Experts attribute this to factors such as import reliance, fuel taxes, and high land costs.
High gasoline prices, coupled with expensive vehicle registration and parking fees, contribute to Hong Kong's car ownership rate being among the lowest in major cities and developed economies. Only about 8,4% of Hong Kong's total 7,5 million residents own a private car, according to data from the city's Department of Transport.
Economists warn that rising gasoline prices could exacerbate inflation and increase transportation costs, ultimately affecting other sectors. Last month, Hong Kong Chief Executive Ly Gia Sieu expressed concern about surging oil prices and pledged to closely monitor the situation.
On 1/4, the special administrative region's government affirmed its ability to "maintain a stable energy supply" by importing about 80% of its petroleum products from mainland China.
Increased fossil fuel prices also put pressure on electricity sources. Approximately 25% of Hong Kong's electricity consumption is imported from Guangdong province. The remainder is self-produced, with 97% coming from coal and natural gas. Ortis Fan, an analyst at Bloomberg Intelligence in Hong Kong, forecasts higher electricity prices this summer.
Speaking to SCMP, Michael Kadoorie, Chairman of CLP - one of the local two electricity providers - stated that the Middle East crisis serves as a "golden warning," indicating the city needs to proactively consider its future electricity production.
Phien An (according to CNN, Bloomberg)
