HK Electric will cut fuel surcharges for May, marking the second consecutive monthly drop, but has warned of significant rises later this year due to the Middle East conflict. The May fuel clause charge will fall by 4.4 HK cents per kWh to 26 HK cents per kWh.
HK Electric announced on Friday that its fuel clause charge for May will fall by 4.4 HK cents per kilowatt-hour to 26 HK cents per kWh. The decline, based on January's average fuel costs under the monthly adjustment mechanism, marks the second consecutive monthly drop.
"Although international fuel prices have risen sharply since March amid geopolitical developments, the relatively lower fuel costs recorded in the first two months of the year, together with adjustments to the fuel mix and fuel-supply arrangements made in response to the Middle East’s situation, have provided a certain buffer for customers," the company said.
HK Electric supplies power to Hong Kong Island and Lamma Island, while its larger rival, CLP Power, serves Kowloon, the New Territories and Lantau Island.
Earlier this month, the United States and Iran reached a temporary agreement to halt the conflict. However, the dispute has disrupted global energy supplies, including intermittent closures of the strategic Strait of Hormuz, through which roughly 20 per cent of the world’s oil supply travels.
