Premium unleaded gasoline rises to over 32 yuan per liter. Li Yaopai: Oil prices may soar again in the middle to late part of this week

Li Yaopei, the Honorary President of the Hong Kong Automobile Association, stated this morning (9th) on a radio program that the price of premium unleaded gasoline has reached HKD 32.39 per liter, while diesel has also surpassed HKD 30. He pointed out that Hong Kong's fuel prices are already the highest in the world, and he expects the pressure on transportation costs in Hong Kong to increase further in the future.

Li stated that oil companies are still selling fuel purchased at lower prices earlier, but they have been raising prices slightly every day recently. He believes that the oil companies' inventory has been "mostly depleted," and he anticipates that a new batch of gasoline arriving from Singapore later this week will be much more expensive, reflecting international oil prices and shipping costs in local fuel prices.

Currently, the Hong Kong government collects a fuel tax of HKD 6.06 per liter on unleaded gasoline. He suggested that the government introduce temporary relief measures, such as reducing the fuel tax on unleaded gasoline or providing fuel vouchers to public transport companies; otherwise, it may lead to an increase in illegal gas stations.

Li also mentioned that Hong Kong's fuel prices are the highest in the world, "increasing quickly and decreasing slowly." He noted that the recent Middle East conflict has caused a sharp rise in oil prices, affecting the entire world, including Hong Kong. However, even if the war ends and things return to normal, based on past experience, he believes that the speed and extent of price reductions by oil companies will be much slower than price increases. Regarding the high cost of gasoline, he expressed understanding but pointed out that the issue lies in the structure of fuel prices, including taxes, land, and labor costs, stating frankly that "drivers in Hong Kong have no choice" but to endure high fuel prices