Hong Kong offers diesel subsidy, toll waivers to lower fuel cost pain
Two-month measures will support diesel-using public and commercial vehicles, vessels and related industries
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[HONG KONG] Hong Kong took steps to help its transport sector with rising fuel costs on Thursday (Apr 9) with a HK$3 (S$0.49) per litre subsidy on diesel used by commercial vehicles and vessels and a 50 per cent toll discount for commercial traffic using government-managed tunnels.
Hong Kong, which imports almost all of its energy, relies on fossil fuels for power generation and has some of the world’s highest petrol prices, according to globalpetrolprices.com.
The government said the two-month measures will support diesel-using public and commercial vehicles, vessels and related industries and cost about HK$1.8 billion.
Private cars and motorcycles are excluded from the tunnel toll reduction, which is expected to result in about HK$160 million in lost revenue, it said in a statement.
Around 80 per cent of Hong Kong’s petroleum products are imported from mainland China, and its government has maintained close communication with Beijing to ensure stable energy supplies, the Inter-departmental Fuel Supply Monitoring Task Force told the city’s leader John Lee in a meeting.
As the Iran war rattles global markets, rising fuel costs and supply concerns are hitting Hong Kong’s transport sector, with some shuttle buses and ferries reducing services.
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A public transport task force will also be set up to fast-track operators such as public buses and ferries seeking flexibility to manage higher fuel costs. REUTERS
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