Tank full, wallet empty? Hong Kong’s petrol prices worst hit amid Iran war

The Middle East war has pushed energy prices higher, affecting lives across the globe. As the crisis has crossed one month, oil prices have stayed beyond the $100 per barrel mark and ripples are visible across the globe. While some countries are encouraging measures to move beyond fuels, others are forced to raise prices, making everyday routine costlier. Residents in Hong Kong are contending with the highest petrol prices in the world, as global energy markets remain under strain and costs continue to climb. At roughly $15.6 per gallon, fuel in the city far exceeds prices seen elsewhere, even as motorists in the United States face their highest rates since 2022.The sharp rise in global oil prices follows escalating tensions involving oil-producing Gulf nations and the disruption of a crucial shipping corridor through the Strait of Hormuz. Over the past month, these developments have driven a surge in oil costs worldwide, placing added pressure on Asian economies that depend heavily on energy supplies routed through the region. The fuel price hike is not new for Hong Kong as the country had already been grappling with steep costs even before the latest crisis. Data from GlobalPetrolPrices.com shows the city has consistently ranked as the most expensive place for petrol, even prior to the conflict involving Iran, CNN reported.Although private vehicles are owned by only about 8.4% of the city’s 7.5 million residents, economists caution that the impact extends beyond motorists. Rising fuel costs are expected to push up logistics expenses, which could filter through to other parts of the economy and contribute to inflation.Authorities have sought to reassure the public on supply stability. Chief Executive John Lee had earlier voiced concern over rising oil prices and said the government would keep a close watch on movements in the market. Officials maintain that supply remains secure, with about 80% of Hong Kong’s oil products sourced from mainland China.“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 said as cited by CNN.At the consumer level, the price disparity with mainland China is becoming increasingly apparent. Reports suggest more drivers are crossing the border to refuel, where petrol can cost as little as one-third of Hong Kong prices.Hong Kong has long had relatively low car ownership levels among major cities, a trend shaped by high fuel prices, expensive parking and steep vehicle registration fees. The city’s extensive public transport network continues to serve as the primary mode of travel for most residents. Experts say a combination of high fuel duties and land costs continues to keep petrol prices elevated, reinforcing Hong Kong’s position at the top of global fuel price rankings.