In response to the surge in fuel prices following the US-Iraq war, Hong Kong’s Financial Secretary Paul Chan Mo-po announced on the 29th that starting from 12:00 a.m. on April 30, a subsidy of HK$3 (RM1.51) per liter will be provided for vehicle diesel fuel for a duration of two months. In May, a subsidy of HK$0.5 (RM0.25) per liter will also be offered for vehicles using liquefied petroleum gas (LPG), including taxis, minibuses, and small school buses, with the same duration of two months; the effective date will be announced separately.
According to comprehensive Hong Kong media reports, Paul Chan made the announcement to the media on the evening of the 29th after attending a Hong Kong Legislative Council meeting.
Paul Chan stated that the Hong Kong government proposed at the beginning of April to provide a HK$3-per-liter subsidy for vehicle diesel fuel for two months, with funds estimated to require HK$1.8 billion (RM908 million), which was approved on the 29th by the Finance Committee of the Legislative Council. This subsidy will be implemented from 12:00 a.m. on April 30 to 11:59 p.m. on June 29, directly benefiting users.
He said that starting in May, the capped price of LPG for vehicles in Hong Kong will increase by more than HK$1 (RM0.5) per liter, with an average increase exceeding 28%. Considering that most minibuses and taxis in Hong Kong use LPG, and taking into account the impact on public services, a subsidy of HK$0.5 per liter of LPG will be provided for two months, with the implementation date to be announced later.
Paul Chan stated that implementing the LPG vehicle fuel subsidy is estimated to require about HK$38 million (RM19.17 million). The Hong Kong government will reallocate internal resources, and the measure has already been endorsed by the Chief Executive.
He said the government will closely monitor the effects of the Middle East conflict on energy prices and the macroeconomy. The top priority is to ensure the stability of Hong Kong's energy supply and the smooth operation of the economy, and that there is ample capacity and flexibility to cope with challenges.