Operators welcome $1.8b diesel subsidy but fear it will fuel the wrong tank

Industry operators have welcomed the government’s HK$1.8 billion diesel subsidy but warned that the relief may not fully reach end users unless it is delivered directly to them.

The concerns came after the Legislative Council approved a HK$3-per-litre diesel subsidy for two months last Friday, aimed at easing cost pressures on commercial vehicles, vessels and other diesel-dependent sectors.

Speaking on a television program, Hong Kong Non-Franchised Bus Association chairperson Eddie Choi Shun-kei said the industry is unlikely to feel the full impact of the subsidy, despite public perception that it could cover 80 to 90 percent of fuel costs.

Choi explained that fuel stations already offer various discounts, which may have incorporated the government subsidy into existing promotions, creating a misleading impression that the relief is directly benefiting customers.

He urged the government to provide the subsidy directly to the industry to help offset rising operating pressures exacerbated by the Middle East conflicts.

Meanwhile, Hong Kong Laundry Service Association chairman Lin Sai-wai said diesel typically accounts for 15 to 20 percent of operating costs under normal conditions.

However, he noted that diesel prices have surged sharply since March, rising from about HK$6 to as high as HK$17.5 per liter — nearly tripling — and pushing fuel costs to around 50 percent of overall operating expenses.

Lin described the government’s targeted subsidy as timely, estimating it could reduce operating costs by about 8 percent.