Hong Kong faces the world's highest gasoline prices as Gulf conflict drives global oil costs higher

Gasoline prices in Hong Kong are the highest in the world as global oil costs rise amid tensions in the Gulf. According to CNN Money, residents are paying about $15.60 per gallon, equivalent to roughly VND 108,500 per liter using Vietcombank’s selling rate of VND 26,361 per USD (1 gallon is about 3.79 liters).

Background: prices already at record highs

Even before the Ukraine–Iran-style conflict broke out on February 28, triggering a historic energy crisis, Hong Kong had already consistently topped global rankings for the highest gasoline prices, based on data from GlobalPetrolPrices.com.

Global context and pressure on import-dependent economies

In the United States, gasoline prices recently surpassed $4 per gallon (roughly VND 27,800 per liter), the highest since 2022. High fuel prices are particularly difficult for Hong Kong and other Asian economies that rely heavily on energy imports from the Middle East.

Most crude oil and natural gas imported by Asian economies is shipped via the Hormuz Strait, which Iran has blocked. In addition, energy production facilities in Gulf states have suffered significant damage due to the conflict.

Local exposure: limited car ownership, wider cost risks

Only about 8.4% of Hong Kong’s 7.5 million residents own cars. Economists say persistently high gasoline costs could push up inflation and logistics costs in the territory, with spillovers to other sectors.

In March, Hong Kong Chief Executive John Lee said he was concerned about elevated fuel prices and pledged to closely monitor price movements.

Supply stability and pricing differences with Mainland China

Hong Kong’s energy supply remains stable because the city imports roughly 80% of its oil products from Mainland China, according to the government. A city government press release said: “With strong support from the mainland, Hong Kong maintains stable energy supply amid energy shortages in many regions and cities around the world.”

Hong Kong media has also reported an increasing number of car owners refueling in Mainland China, where gasoline prices can be only about one-third of those in Hong Kong.

Impact on households and transport workers

According to Jason Kan, an independent trade consultant in Hong Kong who owns a small hatchback, even with the member-discount program, current gasoline prices remain about 15% higher than before the war. “The 15% rise will certainly have a large impact, as fuel costs already account for a relatively large share of Hong Kong residents’ income, especially when compared with Taiwan and Japan,” Kan told CNN Money.

Kan also said higher gasoline prices encourage residents to travel to nearby Mainland Chinese cities such as Shenzhen, adding that this “could have a significant impact on the Hong Kong economy.”

Liu, a delivery driver in the city, said rising gasoline prices make motorcycle deliveries less efficient: “The cost to buy fuel for delivering a meal has risen, but wages have not.”

Why Hong Kong’s prices stay high

High gasoline prices, along with high parking and vehicle registration fees, have kept car ownership in Hong Kong among the lowest in major cities and wealthy economies, despite the city’s extensive public transport network. Analysts say Hong Kong’s high gasoline prices reflect a combination of high fuel taxes and high land costs.