Following is a question by the Hon Chong Ho-fung and a written reply by the Secretary for Environment and Ecology, Mr Tse Chin-wan, in the Legislative Council today (May 6):
 
Question:
 
     With the ongoing geopolitical conflicts in the Middle East, international crude oil prices have fluctuated sharply and stood at high levels for an extended period, which has also led to persistently high fuel prices in Hong Kong. There are views that the Hong Kong fuel market has long been plagued by opaque pricing, coupled with the complex pricing strategies generally adopted by oil companies, which are based on high pump prices and supplemented by various promotional offers and loyalty rewards, making it extremely difficult for consumers to swiftly compare the selling prices of fuels at different petrol filling stations, thereby undermining the market competition mechanism. In this connection, will the Government inform this Council:
 
(1) whether the authorities will, by making reference to the Residential Properties (First-hand Sales) Ordinance which mandates the use of saleable area as the pricing basis, and the Hong Kong Monetary Authority's requirement for banks to disclose the annualised percentage rate when promoting and providing loan products, conduct a study on introducing legislation to require oil companies to simultaneously display a standard final selling price for auto-fuels (e.g. the fuel price per litre after deducting the company's most common discount) in all their display channels (including roadside signs and promotional materials), so as to enhance price transparency; if so, of the details; if not, the reasons for that;
 
(2) whether the Government will consider requiring oil companies to submit detailed data on their discount structures, so that the Consumer Council can publish a net price comparison table of greater reference value in a timely manner, rather than relying solely on pump prices, with a view to establishing a monitoring mechanism for livelihood-related fuel prices; if so, of the details; if not, the reasons for that; and
 
(3) in the current period of energy price fluctuations, whether the Government will explore other measures to enhance price transparency and prevent oil companies from reducing the strength of promotional offers through complex terms and conditions; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,
 
     Stable energy supply is crucial to Hong Kong's economic and social operations. Public transportation, air passenger and cargo services, and electricity supply, etc, are directly related to energy supply. The situation in the Middle East is affecting global oil supply, with the impact on Asia being particularly pronounced. The top priority of the Government is to ensure the stability of Hong Kong's energy supply.
 
     Currently, around 80 per cent of Hong Kong's oil products come from the Chinese Mainland. With the advantage of having strong support from the motherland, Hong Kong has been able to maintain a stable energy supply amid the emergence of energy shortages in many regions and cities around the world. The Environment and Ecology Bureau (EEB) is in close contact with local auto-fuel suppliers to ensure that the supply of auto-fuel remains stable.
 
     In addition, the Government has established the Inter-departmental Task Force on Monitoring Fuel Supply (the Task Force) to monitor and assess geopolitical changes and fuel supply and prices, to ensure the stability of Hong Kong's energy supply, and to examine the impact of oil price fluctuations on various industries. The Task Force will continue to conduct dynamic assessments, co-ordinate bureaux and departments to prepare contingency plans, and formulate forward-looking strategies. The Task Force will also study different measures to alleviate the impact of rising oil prices.
 
     The reply to the question raised by Hon Chong Ho-fung is as follows:
 
(1) In 2019, the Government issued guidelines for the erection of price information boards (PIBs) within petrol filling stations (PFSs), specifying standards regarding the price information to be displayed, as well as the dimensions, design, and placement of the PIB. The guidelines require oil companies that have newly acquired PFS sites to comply with these requirements and submit proposals for the PIBs to the EEB for approval. The EEB requires oil companies to display on the PIBs the Chinese and English names of the fuel products sold at the PFS, the pump prices, and the net price after any walk-in discounts, in order to enhance transparency. As for discounts offered by oil companies to specific customers (such as members), these are considered common commercial practices intended to attract customers.
 
     To further enhance price transparency, the Government commissioned the Consumer Council in November 2020 to launch the Oil Price Watch website and mobile application, which provide information on pump prices and discounted prices, PFS search function, and push notifications on price changes, enabling consumers to access comprehensive pricing and promotional information more conveniently. As of March this year, the Oil Price Watch mobile application had a total of 123 000 downloads and an average of 157 000 monthly visits, while the website recorded an average of 262 000 monthly visits.
 
(2) and (3) For many years, retail prices of auto-fuels in Hong Kong have been determined by the market and depend on a host of factors, such as the costs of purchasing imported refined oil products and operating PFSs. The Government has been endeavouring to ensure a stable and reliable fuel supply, maintain an open market and encourage competition, and at the same time enhancing transparency of the prices of auto-fuel products so that consumers can make suitable choices.
 
     Although retail prices of auto-fuel in Hong Kong are determined by oil companies having regard to market principles and operating costs, the Government is mindful of the concerns across various sectors regarding auto-fuel prices in Hong Kong and has been monitoring whether changes in local retail prices of auto-fuel are in line with the trend movements of international refined oil product price, and in close contact with oil companies and urged them to promptly adjust prices in tandem with international refined oil product price movements.
 
     To facilitate the public monitoring of retail price adjustments for auto-fuel, with effect from April 1, 2026, the EEB releases, on a weekly basis, the seven-day moving average retail prices, after walk-in discounts, of unleaded petrol and diesel from oil companies, along with the trends in international benchmark prices of refined oil products during the same period, to enhance transparency of market and price. The Competition Commission has also met with oil companies, emphasising the importance of fair competition and information transparency. The Competition Commission will continue to closely monitor the market for any instances of price collusion or unfair competition to ensure fair market operations.
 
     In addition, the Government will continue to work with the Consumer Council to optimise the Oil Price Watch website and mobile application, to facilitate consumers to make informed choices that are suitable to their needs.

Ends/Wednesday, May 6, 2026
Issued at HKT 12:30

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