Motorists facing petrol price increases Source: South China Morning Post Publication date: Jan 26, 2000

Motorists could soon face a fresh round of petrol price rises just days after fuel company bosses resisted calls for a reduction. Pump prices are expected to increase across Hong Kong - which already has some of the most expensive petrol in the world - after three oil companies added 20 to 30 cents to their wholesale prices yesterday. The other companies, which said they were monitoring the market, are likely to follow suit despite calls by legislators on Monday for cuts. "That's the usual [market response]," said Consumer Council spokesman Kenneth So Wai-sang after China Resources Company (CRC) put prices up. "For many many years it's been the same price all over Hong Kong." Prices have been stable since an industry-wide increase in September. While oil companies offer "discounts" at the pump, they are usually identical and give consumers little choice. CRC was the first to move yesterday, adding 30 cents to the wholesale price of unleaded petrol and 20 cents to that of car diesel. It blamed the "very high" import price of oil, which a spokesman said had risen at the end of last year. The increase had not hit the pumps by yesterday afternoon, but CRC said it would soon be passed on. Last night, Mobil announced that from today, it too was adding 20 cents to the price of diesel "to reflect a substantial increase in product costs in the past few months". Minutes later, Esso did the same. The price of unleaded petrol at Shell, Esso, CRC, Caltex and Mobil filling stations was $10.34 per litre yesterday; auto diesel was $5.99 per litre. A Shell spokeswoman said the company had no plans to put prices up but was watching the competition. "As usual, we are closely monitoring the market situation and import prices," she said. Shell is the biggest player in the market, with 61 of Hong Kong's 180 filling stations. Mobil has 37. Caltex, which has 50 stations, had no comment yesterday. Oil companies have been under pressure to lower prices since a Consumer Council report lashed out at the industry "oligopoly". Legislators on Monday called for a price cut, but oil companies refused and urged the Government to reduce the tax on fuel. Mr So said CRC's increase highlighted the need for an overhaul of the industry, as recommended by the council two weeks ago. "The best way to determine the price of a commodity is to let free- market forces dictate it," he said. "You can have two or three people in the trade and competing fiercely, but here we have the pump prices the same all over Hong Kong. "This problem has been with us for many years." Publication date: Jan 26, 2000 ) 1999, NewsReal, Inc.

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-- Carl Jenkins (Somewherepress@aol.com), January 26, 2000

Answers

Response to Hobg Kong Oil Prices going up

snip....Legislators on Monday called for a price cut, but oil companies refused and urged the " Government to reduce the tax on fuel " . end.. How many times has this been asked before

-- kevin (innxxs@yahoo.com), January 26, 2000.