Hong Kong monitors fuel prices as Iran war sparks ‘premature and unfair’ hikes

Authorities are communicating with local oil companies to monitor how the war in the Middle East is affecting Hong Kong’s fuel market, amid a public backlash over what has been called premature price hikes. Responding to a South China Morning Post inquiry on Tuesday, the Environment and Ecology Bureau also said the government had been urging oil companies to provide more data on auto-fuel prices. “In light of the ongoing geopolitical tensions in the Middle East, the government has been in touch with major oil companies to [closely] monitor the impact of international fuel prices on Hong Kong’s auto-fuel market,” the bureau said. Oil markets have been volatile since the US-Israel war with Iran broke out at the end of February, forcing Persian Gulf producers to curb production and effectively closing the strategic Strait of Hormuz, where 20 per cent of the world’s oil passes. The price of Brent crude, the international benchmark, shot up to nearly US$120 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 hikes made before the city used up its stock. Meanwhile, the transport sector is considering a temporary surcharge to offset rising costs. As of Tuesday noon, pump prices at most stations remained unchanged from Monday, with regular petrol at HK$30.59 and premium petrol at HK$32.39, according to the Consumer Council’s Oil Price Watch. But prices at Shell stations were higher at HK$31.09 and HK$32.89 for regular and premium, respectively. In its response to the SCMP, the Environment and Ecology Bureau said the retail price of auto-fuels comprised many components, including purchases of refined oil products, petrol station operations and government taxes. The government was working to ensure a stable fuel supply, maintain an open market, encourage competition and enhance transparency, it added. “In addition, the government has urged oil companies to provide more data related to the auto-fuel prices in order to help enhance market transparency and competition,” it said. Petrol retailing in Hong Kong is dominated by five players – ExxonMobil’s Esso, Chevron’s Caltex, Shell, Sinopec and PetroChina – which together operate 178 stations. In the third quarter of 2025, Hong Kong had about 67 days of storage tank stock for unleaded motor petrol and 15 days for aviation fuel, according to the Census and Statistics Department. Last year, Secretary for Environment and Ecology Tse Chin-wan noted that all auto-fuels sold locally in Hong Kong were imported refined oil products, not crude oil. Therefore, changes in international crude oil prices were not necessarily the same as changes in unleaded petrol and motor vehicle diesel prices, he said.