Hong Kong continues to top the global petrol price chart, with pump prices now standing at USD 3.56 per litre (HKD 27.94/L) as of June 2025. This latest rate cements the city’s position as the world’s most expensive petrol market, far exceeding the global average of USD 1.20/L and well above regional peers such as Singapore, Japan, and South Korea.
Widening Gap Across Asia
In regional comparison, Hong Kong stands alone. Singapore sells petrol at around USD 2.14/L, while Japan averages USD 1.18/L. Mainland China and South Korea follow at USD 1.08/L and USD 1.24/L, respectively. Despite similar income levels, Hong Kong’s petrol prices are up to 230% higher than in nearby countries.
Experts trace this pricing gap to both global oil dynamics and Hong Kong’s unique market structure.
Key Cost Drivers: High Tax, Imports, and Premium-Only Fuel
Hong Kong imports 100% of its petrol, mostly from Singapore. The city has no local refining capacity. Shipping, storage, and handling costs push up retail prices. Only a few companies control imports and distribution.
In addition, the government imposes a fixed fuel tax of HKD 6.06/L (about USD 0.78). This levy makes up nearly 22% of the final pump price.
Hong Kong also sells only 98-RON premium petrol. Cheaper 92-RON and 95-RON grades are unavailable. Consumers must pay for the highest-grade fuel by default. Former officials say a switch to 95-RON could cut prices by up to 15%, but no policy shift has occurred.
Land and Operating Costs Keep Rising
Hong Kong’s land prices are among the highest in the world. Oil companies pay steep fees to lease filling station sites, with land costs rising over 400% in recent years. Rent for depots, wages, insurance, and logistics also add to the cost.
Market Dominance Limits Competition
Five companies dominate the market: Esso, Caltex, Shell, Sinopec, and PetroChina. A past review by the Competition Commission found high barriers to entry. New players struggle to secure land or depot access. While there is no confirmed price-fixing, petrol prices often move in sync. Discount programs do little to reduce the actual cost for consumers.
Geopolitical Pressure on Global Prices
Though Brent crude eased to USD 67.93 after U.S.–Iran tensions, the oil market remains fragile. Hong Kong, which relies fully on refined fuel imports, is especially exposed to global supply risks. Events like Middle East conflicts and shipping disruptions push costs higher for the city.
Market Strain
Hong Kong’s petrol price—USD 3.56/L—is the highest globally. The reasons are clear: heavy fuel tax, total reliance on imports, premium-only fuel sales, high land costs, and low market competition. With global oil markets still volatile and no local reforms in sight, fuel costs in the city are likely to remain high.
