Shocked by gas at $4 in America? Try $15 in this city

If you thought paying $4 for gasoline was bad, spare a thought for this international financial hub which currently has the highest gas prices in the world.

As average gas prices across the United States hit a record since 2022, residents of Hong Kong are confronted with the world’s costliest petroleum – at around US$15.6 per gallon.

Even before President Donald Trump launched a war against Iran – and plunged the world into a historic energy crisis – the semi-autonomous Chinese city had consistently faced the world’s highest gasoline prices, according to data from GlobalPetrolPrices.com, an energy price tracking website.

The conflict involving oil-producing Gulf states, and the effective closure of a critical oil and gas shipping route in the Strait of Hormuz, has sent oil prices surging globally over the past month. This is particularly painful for Hong Kong and other Asian economies, which depend heavily on energy sourced from the Middle East and transported through the strait.

While private car owners represent only about 8.4% of the city’s 7.5 million people, according to data calculated from Hong Kong’s Transport Department, economists said the sky-high gasoline prices could add to inflation and raise logistics costs, which will eventually ripple through other sectors.

City leader John Lee expressed concern about surging oil prices last month, and pledged to monitor price fluctuations closely. For now, energy supply in the city is secure as Hong Kong sources around 80% of its oil products from mainland China, according to the city’s government.

“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,” a Wednesday government press release said.

In recent days, local media have reported that an increasing number of car owners are opting to refuel in mainland China, where gasoline can be as low as one-third of the cost in Hong Kong.

Even with membership discounts, refueling in Hong Kong cost 15% more than before the war for Jason Kan, an independent commercial consultant in the city who drives a compact hatchback.

“A 15% increase definitely poses a major impact, because fuel prices in Hong Kong already start from a very high base, accounting for a relatively large share of the average Hong Kong resident’s income, especially in comparison to Taiwan and Japan,” he said.

Kan added that the high prices added another incentive for Hong Kongers to travel to mainland Chinese cities like neighboring Shenzhen, which have enticed growing numbers of Hong Kong visitors with more affordable grocery and dining costs in recent years.

“This could weigh on Hong Kong’s economy significantly,” he said.

Liu, a food delivery driver in the city, who only gave his last name, also lamented the soaring prices, which have made his hustle on a motorbike less worthwhile.

“The oil price for delivering a meal has increased but the pay has not,” he said

The sky-high gasoline prices – along with astronomical parking fees and high registration fees – make car ownership in Hong Kong one of the lowest among major global cities and wealthy economies. It also has an extensive and high-quality public transportation network.

Analysts have attributed Hong Kong’s pricey gasoline to high fuel taxes and land costs.

CNN’s Samra Zulfaqar in Hong Kong contributed reporting.

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