Eric Hui: Hong Kong government introduces various measures to cope with fuel prices, including subsidies for diesel and reduction of tunnel fees.

On June 10th, the Secretary for the Environment of Hong Kong, Wong Kam-sing, stated in response to questions from legislators that the dedicated task force has implemented measures to address fuel prices, including a diesel subsidy scheme, waiver of tunnel fees for all commercial vehicles, liquefied petroleum gas fuel subsidy, and the establishment of a special application working group for public transport services. Firstly, the diesel subsidy scheme, implemented from April 30th to June 29th this year, aims to support the use of diesel fuel by public and commercial vehicles, ships, and related industries. Under this scheme, users in Hong Kong are eligible to receive a subsidy of HK$3 per liter of diesel purchased locally, reducing the price by HK$3 per liter. The subsidy measures are estimated to cost around HK$1.8 billion. Secondly, starting from May 17th, all commercial vehicles are granted a 50% waiver on tunnel fees imposed by the Hong Kong government for two months until July 16th. This temporary measure aims to reduce operating costs for commercial vehicles, benefiting drivers and operators. It is estimated that around 165,000 registered commercial vehicles in Hong Kong will benefit, leading to a projected revenue loss of approximately HK$160 million for the government. Thirdly, starting from May 31st, a subsidy of HK$0.5 per liter of liquefied petroleum gas fuel is provided to taxis, public light buses, and school private light buses for two months until July 30th. This temporary measure aims to reduce operating costs for local passenger transport vehicles using liquefied petroleum gas as their main fuel, benefitting around 16,900 taxis, 3,440 public light buses, and 170 school private light buses. Fourthly, the establishment of a special application working group for public transport services aims to assist public transport operators, including buses and ferries, in flexibly responding to the increase in fuel costs. The working group held its first meeting on April 16th to understand the current operating environment and measures taken by bus operators to address rising fuel costs. The group will consider targeted temporary measures to help operators save energy and improve operational efficiency in response to fluctuations in oil prices. Wong Kam-sing emphasized that the retail price of vehicle fuel in Hong Kong has always been determined by individual oil companies based on market principles and operating costs. The government closely monitors whether local retail fuel prices follow the trends of international oil prices and maintains communication with oil companies, urging them to reduce retail prices promptly when international oil prices fall. To assist the public in monitoring changes in local fuel prices, the Environmental Protection Department of Hong Kong has been publishing the seven-day moving average retail prices of unleaded petrol and diesel for each oil company since April 1, 2026, along with the market index prices of international oil during the same period to improve market and price transparency. The Competition Commission has also met with oil companies, emphasizing the importance of fair market competition and information transparency to ensure the fair operation of the market. Hong Kong benefits from the support of the mainland in ensuring stable energy supply during shortages in many regions and cities globally, however, fuel prices in Hong Kong are still determined based on market principles. Wong Kam-sing stated that there are currently no plans to invoke Section 6 of the Petroleum (Conservation and Control) Ordinance (Chapter 264). The government will continue to dynamically assess and closely monitor international developments and energy price trends, coordinate various policy bureaus and departments to prepare contingency plans, make forward-looking deployments, and study different measures to mitigate the impact of rising oil prices on society and livelihoods.