Hongkongers were warned of rising energy costs on Monday as regional markets were rocked by the war in the Middle East.
Oil violated US$100 (HK$782) a barrel for first time since 2022 as US-Israel war on Iran continued into the second week with no sign of abating.
Billy Mak, an associate professor of economics at Hong Kong Baptist University, said on Monday that electricity bills in Hong Kong reflect fuel costs through the fuel adjustment clause. Speaking to reporters after a Commercial Radio program, Mak referred to the monthly rate adjustment.
He warned that oil could rise to $150, as it did when the Russia-Ukraine war broke out. “So in the near future, we can anticipate that our electricity prices will increase because the fuel cost adjustment account will increase,” he said. according to in RTHK.
Separately, Hong Kong China Automobile Association Honorary Life President Ringo Lee, MOVED the government will offer temporary fuel relief to motorists, saying oil firms tend to raise prices quickly but lower them slowly.
“Hong Kong drivers have no choice but to carry expensive fuel,” Lee told RTHK.
US President Donald Trump said only Iran’s “unconditional surrender” would end the war, although it is unclear what that would entail.
“I said unconditionally. It’s where they cry uncle or when they can’t fight anymore and there’s no one around to cry uncle — that can happen, too,” he told reporters Saturday aboard Air Force One. according to to the Custodian.
Trump has said the rise in oil prices was 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 reportedciting official figures. Seven US soldiers have been killed, US Central Command said on Monday, with Tehran attacking US bases and surrounding countries.
Asian markets fall
Meanwhile, Hong Kong’s Hang Seng Index closed up 1.4 percent at 25,408.46 on Monday.
Stock markets in Shanghai, Sydney, Singapore, Manila, Bangkok, Mumbai, Jakarta and Wellington also closed lower.
Initial public offerings (IPOs) on the local stock exchange also suffered on Monday. Shenzhen Zhaowei Machinery & Electronics, Estun Automation and Alsco Pooling Service were among a wave of Chinese firms to enter the market after the Lunar New Year.
According to per Reuters, micro-drive provider Zhaowei fared best with a four percent rise to HK$71.28 from its initial offering. But robot maker Estun fell 14 percent, while reusable packaging service provider Alsco saw its price jump 40 percent.
MeiG Smart Technology was listed on Tuesday.
