Hong Kong will introduce a two-month subsidy for liquefied petroleum gas (LPG) used by taxis, minibuses and school buses from May, amid soaring fuel prices, while a previously announced diesel subsidy will take effect on Thursday.
Financial Secretary Paul Chan Mo-po said on Wednesday that the interdepartmental task force monitoring fuel price movements had proposed a 50 HK cents per litre subsidy for two months, starting in May, to alleviate operational pressure on taxis and minibuses, among others.
Chan noted that the ongoing Middle East conflict had driven up the city’s LPG prices, with the cap price at dedicated LPG refilling stations expected to rise by more than HK$1 per litre from May, representing an average increase of over 28 per cent.
“Since most minibuses and taxis run on LPG, this will put considerable pressure on their operations,” the finance chief said.
“To mitigate the impact on public services, the task force recommends a subsidy of 50 HK cents per litre of LPG for taxis, public minibuses and private school buses for two months.”
Secretary for Transport and Logistics Mable Chan said the new LPG subsidy would cost the government HK$38.4 million, with the funds to be reallocated internally.
She added that she expected a total of 16,900 taxis, 3,440 minibuses and 170 school buses to benefit.
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