The Hong Kong Special Administrative Region government will launch a temporary fuel subsidy of HK$0.5 per liter of liquefied petroleum gas (LPG) for taxis, public light buses and school private light buses on May 31.
The measure will last for two months until 11:59 pm on July 30, Inter-departmental Task Force on Monitoring Fuel Supply – set up after the Middle East conflict sent the energy market into a severe, volatile shock – announced on Wednesday.
About 16,900 LPG (including LPG-hybrid) taxis, 3,440 LPG public light buses and 170 LPG school private light buses will benefit from the subsidy, the government said in a statement.
The two-month temporary measure aims to alleviate operating costs for local passenger transport commercial vehicles, which primarily use LPG as fuel, and reduce the pressure for fare increases, said a government spokesman.
On April 30, the SAR government rolled out a diesel subsidy scheme to help public and commercial vehicles and vessels, which use diesel as fuel, cope with fuel prices amidst ongoing tensions in the Middle East.
From May 31, oil companies will offer a discount of HK$0.5 per liter of LPG at all 66 LPG filling stations across the city for all LPG taxis, public light buses and school private light buses.
No registration or application is required to avail this discount.
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The HKSAR government signed agreements with six oil companies – Sinopec, ExxonMobil, Shell, PetroChina, Chevron (Caltex), and Feoso – which set out responsibilities and terms to ensure proper use of public funds.
The arrangements include the government’s reimbursement to oil companies for the actual amount of subsidies provided; the requirement for oil companies to maintain complete and accurate books and records; the requirement to submit reports to the government every week; and auditing arrangements.
The Transport Department has, meanwhile, steered oil companies in completing system enhancements and testing to ensure smooth implementation.
The department will display posters at its licensing offices and LPG filling stations. Leaflets will be distributed at major taxi stands, public light bus stands and all dedicated LPG stations to inform frontline drivers of the subsidy details.
