Lawmakers Fume At Petrol Prices, Watchdog Unmoved

Legco's economic development panel on Monday unanimously called on the Competition Commission to start an investigation into whether the city's oil companies are acting as a cartel, but the watchdog refused to promise such a step.

The commission said in a study conducted in 2017 that there was not sufficient evidence to suggest that such a cartel existed.

But lawmakers from both sides of the aisle reiterated their concerns about protecting consumers, pointing to constantly high fuel prices and different companies charging the same as each other.

The Civic Party's Jeremy Tam said the collusion between the oil companies appears to be obvious. He said the companies are selling at exactly the same prices, down to the cent. "To me that is obvious evidence ... that there is something going on," the lawmaker said.

Transport sector lawmaker Frankie Yick said the prices never go down in Hong Kong.

"The fuel prices for vehicles have been raised time and time again, and it was a record high in terms of fuel price at the gas station," he said.

"At the time when the international fuel oil was US$148 per barrel, the sale price was HK$16.81 ... but now it’s fallen to US$63 per barrel ... it is still at a record high in terms of gas station fuel prices," he pointed out.

Pro-government lawmaker Holden Chow accused the commission of not doing enough.

"There are allegations that fuel companies are colluding to fix the prices, but it seems that the commission is refuting such allegations," he said.

Responding to lawmakers, the Competition Commission's chief executive officer, Brent Snyder, acknowledged that the issue was of significant concern.

But he said high prices alone were not indicative of anti-competitive practices.

Snyder said a Legco motion could not compel the commission to launch a probe, and he would not confirm whether the commission is already investigating.