Hong Kong weighs petrol pricing disclosure rule in tenders as fuel costs surge

A fuel station in Sha Tin.

Photo: Sam Tsang Hong Kong authorities are facing mounting pressure from lawmakers to roll out more measures to rein in surging fuel prices, including a requirement for firms to disclose pricing formulas when bidding for petrol stations – an idea the environment minister said could be considered.

Secretary for Environment and Ecology Tse Chin-wan told the Legislative Council on Wednesday that the government was open to reviewing the current tender policy for petrol station sites to bring down soaring fuel prices, a proposal the bureau has rejected over the past decade. “Of course, any changes must be carefully weighed for their pros and cons,” Tse said. “But this is an area we can study further.” He stressed, however, that the Competition Commission had found no evidence of unfair competition or price manipulation in the fuel market.

Tse was responding to lawmaker Ben Chan Han-pan, who urged the government to adopt the tender model used for liquefied petroleum gas (LPG) stations, with a “zero premium arrangement” alongside a requirement for suppliers to disclose their pricing adjustment formulas.

Currently, petrol station sites are awarded to the bidder who offers the highest land premium.

The proposal has been raised several times in recent years, but consistently rejected by the administration.

Tse Chin-wan says any changes must be carefully weighed for their pros and cons.

Photo: Edmond So In 2020, the then environment minister Wong Kam-sing told the legislature that such a move would be “using taxpayers’ money to subsidise private vehicle owners”, while indirectly encouraging more people to own vehicles and worsening traffic congestion.

Meanwhile, fellow lawmaker Gary Chan Hak-kan urged the government to liaise with mainland China to establish a dedicated petrol supply mechanism with quotas based on local demand.

Tse said the suggestion would be considered, adding that about 80 per cent of Hong Kong’s oil products are currently supplied from the mainland, helping ensure supply stability.

Oil markets have been volatile since the conflict broke out in the Middle East at the end of February, forcing Gulf producers to cut output amid the effective closure of the Strait of Hormuz, through which 20 per cent of the world’s supply passes.

The environment chief reiterated that existing policy had effectively maintained a stable fuel supply, but did not rule out better measures to control prices when responding to lawmaker J

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