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Written by: comment editing room
2020-11-04 17:30
Last update date: 2020-11-04 17:30
Under the new crown epidemic, international oil prices have fallen, but the price of fuel for vehicles in Hong Kong has not been adjusted accordingly.
The Consumer Council launched the "Oil Price Information Link" website and mobile app on Tuesday (3rd) to display and compare the retail prices of various oil companies and the discounted oil prices in stores. This may be the only good news for drivers.
"Oil Price Information Link" merges the original oil price computer and diesel computer. The program covers a number of functions, including displaying the cheapest oil price, simultaneously displaying and comparing the retail price of various oil companies and retail discounted oil prices; weekly discounts and offers in the form of a schedule ; It has the calculation function of designated gas station discounts and gas coupon discounts; coordinated with the map to locate "oil price search", etc.
To help consumers understand the most affordable oil prices and to promote price competition among oil companies.
The Director-General of the Consumer Council, Huang Fengxian (right), pointed out that the discounts offered by oil companies are more diversified than in the past, and it is difficult for consumers to understand the discount model of oil companies.
(Photo by Lao Minyi)
Consumer Council helps the circulation of oil price information
The oil price in Hong Kong is extremely expensive globally and is slowing down. The situation has been mentioned in the automotive fuel market research published by the Competition Commission in 2017 that the unique structure and behavioral characteristics of the fuel industry hinder competition.
For example, in terms of industry structure, the market is highly concentrated on several fuel retailers, high barriers to market entry and business expansion, similar cost structures, and only a single gasoline product supply. In terms of behavioral characteristics, it means that local oil companies do not pay attention to the price list. Showcase, great emphasis on discounts, and prices rarely change over time or region.
The Consumer Council assists drivers in monitoring oil prices through the production of programs, and objectively it can also help the Commission to monitor local oil price trends and understand whether the market is operating under effective competition.
The Consumer Council uses the "Oil Price Information Link" to collect and verify oil price information based on the websites of various oil companies, mobile apps, gas stations, customer service hotlines, and contact with oil company representatives via telephone and email.
The Consumer Council's move can improve the flow of price information in the local oil market, not only helping consumers to spend wisely, but also pooling consumer power to monitor oil companies.
"Oil Price Information Link" merges the original oil price calculator and diesel calculator.
(Screenshot of Oil Price Information Communication App)
The Commission's investigative power is insufficient
The Commission lacks substantive investigative powers, and the reality that Hong Kong's oil prices are speeding up and slowing down remains unchanged. At this time, the Consumer Council has been very active in promoting the operation of the "Oil Price Information Link" program to facilitate the public.
However, to protect the rights and interests of consumers, especially on the issue of market-induced competition in oil prices, the investigation power of the Competition Commission, which is responsible for the Competition Ordinance, is actually more important.
The issue of oil prices in Hong Kong is complicated. Although international oil prices have fallen on the one hand, the operating costs of local oil companies are also affected by factors such as labor, rent, transportation, and oil depot operations.
As the Consumer Council’s "Auto Fuel Price Monitoring and Analysis in 2020" pointed out, the price adjustment behaviors of the five oil companies in Hong Kong are unusually similar, and they usually adjust their prices within a few days to match their peers.
However, if the Commission wants to prove that there is a "collusion in pricing" between oil companies, the authorities need to obtain evidence of agreements concluded between competitors in the industry before they can prove that the companies concerned violated the Competition Ordinance.
However, because the oil company’s cost structure, pricing guidelines and other information are “sensitive information” of the oil company, the oil company will not actively disclose it, but the Competition Commission is unable to actively search for evidence. As a result, it often encounters limitations in monitoring the market efficiency of local oil prices. On the contrary, it cannot play a positive effect in protecting consumer rights.
The "Fuel Price Information Link" launched by the Consumer Council indirectly helps the Commission and the city to monitor the fuel market. However, it is necessary to improve the supervision of the local fuel market and expand the Commission's power to investigate companies is the fundamental solution to protect the rights of car owners. .
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