Global energy crisis: US gas price hit $4 while Hong Kong prices soar to $15
US gas prices have hit their highest levels since 2022
The world is currently experiencing uncertainty due to the extreme disparity between US gas prices and those in Hong Kong-currently the world’s most expensive market-driven by geopolitical conflict and local economic factors. While US drivers are concerned by $4.00 per gallon, Hong Kong residents are facing a staggering $15.60 per gallon, the highest in the world.
The primary driver is the ongoing conflict involving Iran and the Strait of Hormuz, which has triggered a global energy crisis, spiking prices across Asia. Although only 8.4% of the population owns private cars, high fuel costs are driving up inflation and logistics expenses, affecting the broader economy. To save money, an increasing number of drivers are traveling to mainland China, where fuel costs can be as low as one-third of Hong Kong’s prices. Despite the crisis, Hong Kong’s government maintains that supply is stable, as 80% of its oil products are sourced from mainland China.
In this connection, a Wednesday government press release said: “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.”
Low-income hustle workers, such as motorbike delivery drivers are seeing their earnings evaporate by fuel costs, as their pay has not increased to match inflation. Furthermore, sky-high gasoline prices, parking fees and high registration fees-make car ownership in Hong Kong one of the lowest among major global cities and wealthy economies.
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