Associations call for transparency as fuel prices rise amid Middle East tensions

[Photpo; Ricaela Diputado]

A mid rising tensions in the Middle East, international crude oil prices have surged, prompting residents and local associations to call on the Macau government for greater transparency regarding fuel price adjustments.

Cheng Chung Fai, chairman of the Macau Association of Consumers of Public Utility Companies, explained that the recent increases are driven by crude oil, rather than refined petroleum products.

“As oil products are mostly traded as futures, theoretically, there should not be an immediate direct impact on retail fuel prices,” he said.

Cheng noted that if oil companies decide to raise retail prices now, authorities should carefully examine whether the reasons are justified. This scrutiny, he said, should apply to both automobile gasoline and domestic liquefied petroleum gas products.

He added that while Macau’s fuel market is not a monopoly and is operated by several companies, the industry still faces high entry barriers. “The government should consider enhancing the disclosure of information,” he suggested. “If the reasons for price hikes do not involve trade secrets, transparency should be increased.”

Lau Pun Lap, president of the Macao Economic Association, highlighted that the rise in crude oil prices has stirred public concern over potential inflation. He emphasized, however, that inflationary pressures in Macau and mainland China remain relatively modest. Lau added that the impact of oil prices on general commodities, such as grain and cooking oil, will largely depend on the duration of the Middle East tensions.

He further reassured residents that many of Macau’s essential goods are supplied by mainland China.

“We are confident that the country will ensure stable and sufficient supplies, helping to mitigate inflationary pressures caused by external developments,” Lau said.

Residents at local gas stations shared mixed reactions to the price increases. According to TDM, a motorcyclist refueling her vehicle said she usually estimates the amount she needs and has not closely monitored oil price changes. Another resident, surnamed Cheung, acknowledged that “fuel prices have gone up a bit,” but added that it remains acceptable for now, as the cost per fill-up is not substantial. Ricaela Diputado