Middle East Conflict Spurs Oil Price Surge, Gas Supply Remains Stable

The recent outbreak of conflict in the Middle East has led to a sharp increase in oil prices. According to Ming Pao, Wong Wai-yee, Managing Director of Towngas (0003), stated that natural gas constitutes 60% of Towngas's supply. Due to a long-term 'take or pay' contract initiated in 2006 with Australian natural gas suppliers, Towngas is insulated from market price fluctuations. Since the implementation of this contract, the company has saved its customers over 20 billion HKD in fuel costs.