Hong Kong Environmental Protection Department: Special Task Force Introduces Four Measures to Address Rising Fuel Prices

On May 13, the Director of the Hong Kong Environmental Protection Department (EPD), Xie Zhanhuan, replied to questions from Member of the Legislative Council Ho King-hon during a legislative council meeting. Xie Zhanhuan pointed out that the Hong Kong government is very concerned about the tense situation in the Middle East, which has led to an increase in fuel prices. The supply and price of fuel affect the daily lives of citizens, including public transportation, aviation, electricity, and fuel prices, which in turn affect transportation costs and may indirectly impact future livelihood needs. The government's main work focuses on ensuring stable energy supply, improving transparency regarding changes in fuel prices, monitoring price changes, considering their reasonableness and necessity, and reminding suppliers of their social responsibilities. Xie Zhanhuan introduced that in response to the conflict in the Middle East, the Chief Executive had instructed the establishment of a dedicated cross-departmental team to monitor and evaluate geopolitical changes, fuel supply, and prices to ensure stable energy supply in Hong Kong and to examine the impact of oil price fluctuations on different industries. The special team introduced measures to address fuel prices: Firstly, the Diesel Subsidy Scheme, in effect from April 30 to June 29, provides a subsidy of HK$3 per liter for locally used diesel fuel, reducing the selling price by HK$3 per liter. Secondly, the government will reduce tunnel fees by 50% for all commercial vehicles (excluding private cars and motorcycles) for two months, saving approximately HK$160 million. The government will work with tunnel fee service providers to adjust the fee system to implement the reduction as soon as possible. Thirdly, a Public Transport Service Special Application Working Group has been established to assist public transport operators (including buses and ferries) in flexibly addressing the rising fuel costs. The working group will consider targeted temporary measures to help operators save energy and improve operational efficiency to cope with oil price changes. Fourthly, to reduce operating costs for local commercial vehicles using liquefied petroleum gas as the main fuel, the government will provide a subsidy of HK$0.5 per liter for taxis, public light buses, and school private light buses for two months. The subsidy measure is expected to be implemented within May, with the actual date to be announced later. The special team will continue to dynamically assess, coordinate policy bureaus and departments, plan ahead for coping strategies, and research various measures to alleviate the rise in oil prices. Xie Zhanhuan stated that to assist the public in monitoring changes in local vehicle fuel prices, the Hong Kong Environmental Protection Department started to publish the seven-day moving average retail prices of unleaded petrol and diesel after discounts from all oil companies as of April 1, 2026. The Competition Commission has also met with oil companies to emphasize the importance of fair market competition and information transparency and will continue to closely monitor the market for any collusive pricing or unfair competition to ensure fair market operation. Regarding promoting energy saving in society, Xie Zhanhuan mentioned that the "Hong Kong Climate Action Bluepri...