Following is a question by the Hon Junius Ho and a written reply by the Secretary for Environment and Ecology, Mr Tse Chin-wan, in the Legislative Council today (June 10):

Question:

     According to statistics from fuel price information websites, Hong Kong ranks among the places with the highest fuel prices worldwide. There are views that under the influence of geopolitical factors such as conflicts in the Middle East, fuel prices in Hong Kong have continued to rise, thereby increasing the burden on people's livelihood and the local economy. Industries such as transport and logistics, laundry services and aviation have been the first to bear the brunt, while local oil companies' fuel pricing lacks transparency. In this connection, will the Government inform this Council:

(1) given that when announcing measures to cope with fuel prices on April 29, 2026, the Government indicated that it would study different measures to alleviate the impact of rising oil prices on society and people's livelihood, whether, apart from implementing measures such as the two-month Diesel Subsidy Scheme of $3 per litre, the waiver of tunnel tolls and the provision of a liquefied petroleum gas fuel subsidy, the authorities have plans to introduce other specific measures in the future to relieve the livelihood burden on the public arising from rising fuel prices through a multi-pronged approach;

(2) whether the Government has, in recent years, conducted detailed studies and analyses on the costs and profits of oil companies, so as to ascertain specifically the causes of high fuel prices in Hong Kong; if so, of the details; if not, the reasons for that; and

(3) whether it will consider regulating the price of oil in accordance with section 6 of the Oil (Conservation and Control) Ordinance (Cap. 264); if so, of the details; if not, the reasons for that?

Reply:

President,

     The Government is very concerned about the rising fuel prices due to the tense situation in the Middle East. The fuel supply and prices affect our daily lives. The Government's work primarily focuses on several aspects. First, to ensure stable energy supply. Second, to enhance the transparency of information regarding changes in fuel prices. Third, the Government monitors price changes, carefully considers their reasonableness and necessity, and also reminds suppliers of their social responsibilities.

     The Chief Executive has earlier directed the establishment of the Inter-departmental Task Force on Monitoring Fuel Supply (the Task Force), chaired by the Financial Secretary, to monitor and assess geopolitical changes, 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.

     In consultation with the Financial Secretary, the Transport and Logistics Bureau and the Commerce and Economic Development Bureau, the reply to the question raised by Hon Junius Ho is as follows:

(1) The Task Force has implemented the following measures to address the fuel prices: 

     First, the two-month Diesel Subsidy Scheme (the Subsidy Scheme) is effective from April 30 to June 29 of this year to support public and commercial vehicles and vessels and related industries that use diesel as fuel. Under the Subsidy Scheme, users who consume diesel locally may receive a subsidy of HK$3 per litre when they purchase diesel, thereby making the selling price of diesel decrease by HK$3 per litre. The relevant subsidy measure is estimated to cost approximately HK$1.8 billion.

     Second, reduce tunnel tolls by 50 per cent for all commercial vehicles using government tolled tunnels for two months from May 17 to July 16. The temporary measure aims to alleviate the operating costs of commercial vehicles; therefore, the beneficiaries are commercial vehicle drivers and operators. We estimate that approximately 165 000 registered commercial vehicles will benefit. It is expected to result in a reduction of approximately HK$160 million in tunnel toll revenue.

     Third, provide a fuel subsidy of HK$0.5 per litre of liquefied petroleum gas (LPG) for taxis, public light buses and school private light buses for two months from May 31 to July 30. The temporary measure aims to alleviate the operating costs of local passenger transport commercial vehicles which primarily use LPG as fuel, and reduce the pressure for fare increases. It is expected that about 16 900 LPG (including LPG-hybrid) taxis, about 3 440 LPG public light buses (including green minibuses and red minibuses), and about 170 LPG school private light buses would benefit from the fuel subsidy. 

     Fourth, the Working Group on Public Transport Service Special Applications (the Working Group) is established to assist public transport operators (including public buses and ferries) in their applications relating to responding flexibly to rising fuel costs. The Working Group convened its first meeting on April 16 to listen to the franchised bus operators on their current business environment and operation situation, as well as measures they have taken to address the rising fuel costs. The Working Group will consider targeted temporary measures to help operators save energy and enhance operational efficiency in response to oil price fluctuations. 

(2) 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 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 Environment and Ecology Bureau 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 (CompComm) has also met with oil companies, emphasising the importance of fair competition and information transparency. The CompComm will continue to closely monitor the market for any instances of price fixing or unfair competition to ensure fair market operations.

(3) 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. Nonetheless, fuel prices in Hong Kong have still been determined according to market principles. 

     At present, we have no plans to regulate the prices of oil using section 6 of the Oil (Conservation and Control) Ordinance (Cap. 264). The Government will continue to conduct dynamic assessment, closely monitor the international situation and energy price movements, co-ordinate bureaux and departments to prepare contingency plans, formulate forward-looking strategies, and study different measures to alleviate the impact of rising oil prices on the society and people's livelihood.

Ends/Wednesday, June 10, 2026
Issued at HKT 12:15

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