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| CE Lee chairs the meeting on how HK should respond to rising fuel prices |
The Hong Kong government is proposing a HK$3 subsidy for every liter of diesel over two months, as part of measures to cushion the impact of the recent surge in fuel prices due to the conflict in the Middle East.
The measure came at the end of a special meeting called by Chief Executive John Lee on Thursday, during which he was briefed by the newly created Inter-departmental Task Force on Monitoring Fuel Supply (the Task Force).
According to the government, the subsidy to be extended to commercial vehicles and vessels would cost HK$1.8 billion
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"[This is] to support diesel-powered public or commercial vehicles and vessels as well as related industries, thereby reducing their operating costs and alleviating pressure to raise prices," the government said in a statement.
At the same time, the relevant government agencies will monitor the pricing practices of oil companies to ensure nobody gets to take advantage of the crisis situation to make profit.
Public transport services which are highly susceptible to the fluctuations in diesel prices like school and residential buses will be given top priority for the subsidy.
Another stop-gap measure is to give 50% discount on the tunnel tolls of commercial vehicles, a move that would cost an estimated HK$160 million in public funds. This is to ensure the supply chain for basic food stuff remains open.
To ensure prudence in government spending, the twin moves will last only for two months.
The proposals will now go to the Legislative Council for approval. The Legco finance committee is due to meet today to vet the government’s funding request.
In the meantime, officials will closely monitor developments in the Middle East conflict and its effect on prices to make policy adjustments if necessary.
