HK Electric announced a reduction in its fuel surcharge for May, citing a deferred effect from January's average costs. However, the company also issued a warning that significant future cost increases may occur due to the instability resulting from the Middle East conflict.

HK Electric will cut fuel surcharges for customers in May but has warned that costs could significantly rise later in the year due to the impact of the conflict in the Middle East. The company said on Friday that its fuel clause charge for May would fall by 4.4 HK cents per kilowatt-hour to 26 HK cents per kWh, citing a deferred effect under the monthly adjustment mechanism based on January’s average fuel costs. The decline marks the second consecutive monthly drop. “Although international fuel....