No Clear Evidence Of Oil Cartel, Say HK Authorities

by Mary Swire, for LawAndTax-News.com, Hong Kong

19 April 2006

Hong Kong's Economic Development and Labour Bureau stated last week that having looked into the structure, operating costs and retail pricing of the local fuel market, there is no clear evidence of collusion by oil companies.

Releasing the 'Consultancy Study on the Local Auto-fuel Retail Market' report last Thursday, the Bureau revealed that the consultant had recommended, however, that it consider preventive measures against cartel behaviour, either through general or sector-specific competition laws.

It also recommended measures to enhance market competition, such as improving the transparency of the auction process for filling station sites.

Commissioned by the Bureau on behalf of the Competition Policy Advisory Group in July, the study examined whether oil companies have engaged in anti-competitive conduct.

The Bureau announced that it will study the recommendations, including legislation and other measures, to ensure market competition. The Competition Policy Review Committee will also take account of the recommendations on the possible introduction of legislative measures in its general review of competition policy.

The report will be discussed by the Legislative Council at its meeting on April 24.

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