By John Liu, Kristie Lu Stout, NCS
Hong Kong (NCS) — If you thought paying $4 for gasoline was dangerous, spare a thought for this worldwide monetary hub which presently has the very best gas costs in the world.
As common gas costs throughout the United States hit a file since 2022, residents of Hong Kong are confronted with the world’s costliest petroleum – at round US$15.6 per gallon.
Even earlier than President Donald Trump launched a war against Iran – and plunged the world right into a historic vitality disaster – the semi-autonomous Chinese city had constantly confronted the world’s highest gasoline costs, based on information from GlobalPetrolPrices.com, an vitality worth monitoring web site.
The battle involving oil-producing Gulf states, and the efficient closure of a essential oil and gas transport route in the Strait of Hormuz, has despatched oil costs surging globally over the previous month. This is especially painful for Hong Kong and different Asian economies, which rely closely on vitality sourced from the Middle East and transported via the strait.
While personal automotive house owners symbolize solely about 8.4% of the city’s 7.5 million individuals, based on data calculated from Hong Kong’s Transport Department, economists mentioned the sky-high gasoline costs may add to inflation and lift logistics prices, which can finally ripple via different sectors.
City chief John Lee expressed concern about surging oil costs final month, and pledged to watch worth fluctuations carefully. For now, vitality provide in the city is safe as Hong Kong sources round 80% of its oil merchandise from mainland China, based on the city’s authorities.
“With the advantage of having strong support from the motherland, Hong Kong has been able to maintain a stable energy supply amid energy shortages in many regions and cities around the world,” a Wednesday government press release mentioned.
In latest days, native media have reported that an rising variety of automotive house owners are opting to refuel in mainland China, the place gasoline may be as little as one-third of the associated fee in Hong Kong.
Even with membership reductions, refueling in Hong Kong price 15% greater than earlier than the battle for Jason Kan, an impartial industrial marketing consultant in the city who drives a compact hatchback.
“A 15% increase definitely poses a major impact, because fuel prices in Hong Kong already start from a very high base, accounting for a relatively large share of the average Hong Kong resident’s income, especially in comparison to Taiwan and Japan,” he mentioned.
Kan added that the excessive costs added one other incentive for Hong Kongers to journey to mainland Chinese cities like neighboring Shenzhen, which have enticed rising numbers of Hong Kong guests with extra inexpensive grocery and eating prices in latest years.
“This could weigh on Hong Kong’s economy significantly,” he mentioned.
Liu, a meals supply driver in the city, who solely gave his final title, additionally lamented the hovering costs, which have made his hustle on a motorcycle much less worthwhile.
“The oil price for delivering a meal has increased but the pay has not,” he mentioned
The sky-high gasoline costs – together with astronomical parking charges and excessive registration charges – make automotive possession in Hong Kong one of many lowest amongst main world cities and rich economies. It additionally has an in depth and high-quality public transportation community.
Analysts have attributed Hong Kong’s expensive gasoline to excessive gasoline taxes and land prices.
The-NCS-Wire
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NCS’s Samra Zulfaqar in Hong Kong contributed reporting.