Hong Kong Small and Medium Enterprise Chambers Urge Government Utility Subsidies as Rising Fuel Surcharges Squeeze Operating Margins

Hong Kong, 26 August 2026 – Major business chambers and commercial trade associations representing small- and medium-sized enterprises (SMEs) across Hong Kong have formally petitioned the Special Administrative Region (SAR) government to introduce targeted electricity tariff subsidies and concessionary utility rebates, warning that escalating global fuel adjustment surcharges are severely eroding operating margins across retail, catering, and light manufacturing sectors.

The joint appeal, coordinated by the Hong Kong General Chamber of Small and Medium Business and the Hong Kong Catering Management Association, highlights that local commercial power tariffs have climbed by over 7.8% since the start of the year, driven by higher global procurement costs for imported liquefied natural gas (LNG) and international coal feedstocks utilized by power utilities CLP Power and HK Electric. For energy-intensive commercial operators, including cold-chain food distributors, commercial bakeries, laundries, and precision machine workshops, electricity expenses have escalated to represent more than 18% of total operating overheads.