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Chief Executive Donald Tsang vowed yesterday to take measures to improve the transparency in fuel pricing and ease inflationary pressure on the community.

Tsang made the pledges after drivers and shop owners told him about the inflation burden during his visit to Sham Shui Po yesterday.

The drivers, whom Tsang met at gas stations, told Tsang that the rising fuel prices are making their lives difficult.

Some drivers told Tsang that gas stations are charging differently and the discrepancy could be as much as 50 HK cents per liter, which leads to long queues at some stations.

Tsang replied that the government will study measures to make public the price differences and make oil companies enhance transparency in their price-fixing process.

He reiterated that the government will not adopt a price-fixing mechanism, but added that the government might make room for price adjustment.

Hong Kong Baptist University finance associate professor Billy Mak said improving pricing transparency will be difficult.

He said the government should make clear how long it will take for oil price fluctuations to be reflected on oil products.

"But it involves obtaining sensitive information of oil companies, including the gross profit and how long they take to import and refine crude oil. This is difficult provided that the oil market in Hong Kong is dominated by a few companies," he said.

But he said he believes improving transparency can help drivers better anticipate when oil prices will increase.

Tsang also expressed his concern over the inflation when visiting a supermarket and grocery stores in Mei Foo Sun Chuen together with representatives of the Consumer Council.

Tsang found out that the grocery stores and supermarket charged differently on the same product. He pledged to give support to the council to continue its price comparison surveys.

"This is a good practice and will help stabilize prices," he said.

He added that he will continue studying livelihood issues before delivering his policy address in October.

(HK Edition 07/01/2008 page1)