Safety Regulation and the Rise of Towngas in Hong Kong Harvard Case Solution & Analysis

Safety Regulation and the Rise of Towngas in Hong Kong Case Solution

The three most prominent types of heating fuels used in Hong Kong before 1980’s were LPG, Towngas, and Kerosene. Numerous injuries due to the use of LPG that occurred in the years preceding 1981 prompted the authorities to commission a study on the safety aspects of gas, which resulted in strict regulations on LPG supply.

Some asserted that the safety regulation gave Towngas an unfair advantage over LPG and, therefore, gave rise to Towngas' dominant position by the 1990s. But the authorities believed that there was adequate competition and, therefore, no need for government intervention.

PUBLICATION DATE: May 12, 2004

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