The ongoing crisis in the Middle East has led to a sharp surge in global crude oil prices, according to an announcement from TRANSPORT INT'L (00062). It is noteworthy that due to geopolitical tensions, the price of diesel has risen even more sharply than crude oil, causing varying degrees of impact on the refined oil supply chain, refinery operations, and global distillate inventories. Since the end of February 2026, diesel prices have surged by nearly 200%, from approximately $90 per barrel to $250 per barrel. Forward indicators suggest that diesel prices are likely to remain elevated in the short term. Measures announced by the Hong Kong Special Administrative Region government on April 9, 2026, to address rising fuel prices have provided the industry with two months of short-term support, including subsidies for diesel prices and tunnel fee waivers, as well as the establishment of a "Special Application Task Force for Public Transport Services" to expedite the approval of applications submitted by public transport operators for flexible responses to rising fuel costs. However, these short-term subsidy measures can only offset part of the increased fuel costs, and the group still faces severe impacts from the rapid rise in fuel prices. The extent of the financial impact on the group will depend on future fuel price movements. The group will continue to monitor market developments and analyze and formulate appropriate operational and financial strategies to address the impact of rising fuel prices.
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