Diesel subsidy kicks off Thursday as LPG relief looms

A two-month HK$3-per-liter diesel subsidy for vessels and commercial vehicles will take effect on Thursday, running until June 29 at an estimated cost of about HK$1.8 billion in public funds.

The measure follows earlier government announcements of temporary relief aimed at easing financial pressure across the transport and logistics sectors amid rising fuel prices.

Speaking to the press on Wednesday, Financial Secretary Paul Chan Mo-po said the subsidy will be allocated to designated oil companies and distributors to ensure motorists benefit directly.

To prevent abuse, Environment and Ecology Secretary Tse Chin-wan said oil companies and distributors are required to submit weekly sales reports and undergo independent audits.

Tse added that a monitoring mechanism has been put in place, under which distributors must first purchase non-subsidized diesel from oil companies before selling it to customers at the discounted price.

"Knowing the price of the diesel, we are confident that we can monitor the fuel price changes and prevent individuals from reaping the subsidy," Tse said, adding that the government would halt the scheme if violations or irregularities are detected.

Citing the ongoing Middle East conflict, Chan also proposed a two-month subsidy of HK$0.50 per liter for liquefied petroleum gas (LPG)-powered taxis, minibuses, and school buses, with implementation targeted for next month.

He said the move comes as LPG prices are expected to rise sharply, with the ceiling price at dedicated filling stations set to increase by more than HK$1 per liter from May, representing an increase of over 28 percent.

At an estimated cost of HK$38.4 million, Secretary for Transport and Logistics Mable Chan said the LPG subsidy would benefit about 16,900 taxis, 3,400 public light buses, and 170 school buses.

She added that the subsidy will be provided directly through LPG filling stations, with operational details to be finalized with oil companies, alongside publicity efforts including posters, briefings, and industry outreach.

 

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