Oil prices soar | Laundry industry says they cannot afford it and halt accepting orders

Iranian conflict has driven international oil prices to surge. Jiang Yuantonglong, a director of the Federation of Washing Services Industries, said that the industry uses industrial diesel, and its share of production costs has risen to 45% to 60%, far higher than the previous roughly 10% to 20%, leaving the low-margin laundry business unable to absorb the increase.

On a Hong Kong and Taiwan program, Jiang Yuantonglong said that in addition to diesel, operating costs also include plastic bags, hangers, laundry supplies, logistics, and more, and that prices have all increased. Taking a small- and medium-sized factory that uses 100,000 liters of diesel per month as an example, its costs are 1.15 million yuan higher than before. The pricing is unreasonable, and the industry also cannot accept it.

He said that currently factories are “washing one item and losing two.” Because oil prices fluctuate day by day, quoting prices is difficult. To save costs, they have already stopped taking orders, frozen manpower, and reduced production processes, but compared with the rise in oil prices, this is like a drop in the bucket.

Legislative Council member Chong Ho Feng of the Realist Roundtable said on the same program that oil prices account for nearly half of a laundry factory’s overall costs. The industry has reported that operating pressure has increased, and since they have already signed service contracts on a yearly basis, they are unable to pass on the costs. There is a large gap between the oil prices in Hong Kong and those overseas. No one knows who is pocketing the excessive middle profits. He suggested that the government intervene to require oil companies to disclose oil-price information, so as to prevent people’s livelihood-related services from being affected.

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