Towngas' operations in HK face pressure of raising gas prices, Peter Wong, Chief Executive Officer of the company, stated today (June 4).
Towngas has submitted a proposal to the government and is in communication regarding a potential price increase.
Wong emphasized that the expected price hike would be less than double-digits and believed the increase would be reasonable.
The government would announce the exact rate of increase and the time of implementation, he added.
According to records, the latest gas price adjustment in Hong Kong happened two years ago.
Wong noted that the company's business in Hong Kong is susceptible to temperature changes.
"With a 3-degree Celsius rise in temperature in the first half of the year, every 1-degree increase leads to a 2.5% drop in gas sales volume," he said.
As a result, Hong Kong gas sales fell 2% in the first quarter, mainly due to a decrease in residential usage, though industrial and commercial demand rose owing to the aviation sector's recovery.
The company expects overall gas sales in Hong Kong to remain flat for the year.
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