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Hongkongers were warned of rising energy costs on Monday, as regional markets were shaken by the war in the Middle East.
Images from social media of huge flames erupting from an oil depot in Tehran over the weekend. Photo: via BBC.Oil breached US$100 (HK$782) a barrel for the first time since 2022, as the US-Israeli war against Iran continued into a second week with no sign of abating.
Billy Mak, an associate economics professor at Hong Kong Baptist University, said on Monday that electricity bills in Hong Kong reflect fuel costs through the Fuel Adjustment Clause. Speaking to journalists after a Commercial Radio programme, Mak made reference to the monthly tariff adjustment.
He warned that oil could surge to US$150, as it did when the Russia-Ukraine war broke out. “So in the near future, we can foresee that our electricity prices will increase because the fuel cost adjustment account will increase,” he said, according to RTHK.
Separately, the Hong Kong, China Automobile Association’s honorary life president, Ringo Lee, urged the government to offer temporary fuel relief to drivers, saying that oil firms tend to raise prices quickly but cut them slowly.
“Hong Kong drivers have no choice but to bear expensive fuel,” Lee said on RTHK.
US President Donald Trump said only the “unconditional surrender” of Iran would end the war, though it is unclear what it would entail.
US President Donald Trump. File photo: White House, via Flickr.“I said unconditional. It’s where they cry uncle or when they can’t fight any longer and there’s nobody around to cry uncle – that could happen too,” he told reporters on Saturday aboard Air Force One, according to the Guardian.
Trump has said that rising oil prices were a “small price to pay” to eliminate Iran’s alleged nuclear threat.
At least 1,255 people have been killed in the attacks in Iran, and at least 13 have died in Israel, Al-Jazeera reported, citing official figures. Seven US soldiers have been killed, US Central Command said on Monday, with Tehran attacking US bases and surrounding countries.
Asian markets slump
Meanwhile, Hong Kong’s Hang Seng Index closed down 1.4 per cent at 25,408.46 points on Monday.
Stock markets in Shanghai, Sydney, Singapore, Manila, Bangkok, Mumbai, Jakarta and Wellington also closed lower.
Photo: Rhoda Kwan/HKFP.Initial Public Offerings (IPO) on the local stock market also suffered on Monday. Shenzhen Zhaowei Machinery & Electronics, Estun Automation and Alsco Pooling Service were among a wave of Chinese firms coming to market after the Lunar New Year.
According to Reuters, micro-drive provider Zhaowei fared best with a four per cent rise of HK$71.28 from its initial offering. But robot-maker Estun dropped 14 per cent, whilst reusable packaging service provider Alsco saw its price fall by 40 per cent.
MeiG Smart Technology is set to list on Tuesday.
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