Having looked into the structure, operating costs and retail pricing of the local fuel market, there is no clear evidence of collusion by oil companies, the Economic Development & Labour Bureau says.

Releasing the Consultancy Study on the Local Auto-fuel Retail Market report today, the bureau said the consultant has recommended it consider preventive measures against cartel behaviour, either through general or sector-specific competition laws. It also recommended measures to enhance market competition, such as improving the transparency of the auction process for filling station sites.

Commissioned by the bureau on behalf of the Competition Policy Advisory Group in July, the study examines whether oil companies have engaged in anti-competitive conduct.

The bureau said it will study the recommendations, including legislation and other measures, to ensure market competition. The Competition Policy Review Committee will also take account of the recommendations on the possible introduction of legislative measures in its general review of competition policy.

The report was submitted to the Legislative Council today, for discussion at its meeting on April 24.

The report, including an executive summary, can be downloaded here.