Inter-departmental Task Force on Monitoring Fuel Supply launches measures to cope with fuel prices
The Inter-departmental Task Force on Monitoring Fuel Supply (Task Force), which was set up in response to the conflict in the Middle East region, announced today (April29) that it will roll out the HK$3 per litre Diesel Subsidy Scheme (the Subsidy Scheme) starting from tomorrow (April 30) as approved by the Chief Executive earlier on. The Subsidy Scheme aims to support public and commercial vehicles and vessels, and related industries that use diesel as fuel, with its estimated expenditure at around HK$1.8billion as approved by the Finance Committee of the Legislative Council earlier.
Furthermore, having considered the five principles announced earlier, in particular on the extent of the impact on society, whether adequate alternatives are available to the public, and whether the support was temporary and time-limited in nature, the Task Force recommended the provision of a fuel subsidy of HK$0.5 per litre of liquified petroleum gas (LPG) for taxis, public buses and school private light buses for a period of two months by end-May 2026, with the exact commencement date to be announced separately. The Chief Executive has accepted this recommendation from the Task Force. The total amount of expenditure for this initiative is approximately HK$38.4 million. The Government will redeploy internal resources to implement this measure.
The Government spokesman said that the fuel supply in Hong Kong remains stable. The Task Force will continue to conduct dynamic assessments, closely monitor the international situation and energy price movements, co-ordinate bureaux and departments to prepare contingency plans, formulate forward-looking strategies, and study different measures to alleviate the impact of rising oil prices on the society and people's livelihood.
The Diesel Subsidy Scheme
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Under the Subsidy Scheme, users who consume diesel locally can receive a subsidy of HK$3perlitre of diesel when they purchase diesel to make the selling price decrease by HK$3perlitre accordingly. The Subsidy Scheme does not apply to diesel used for non-local consumption, resale, and vehicles, vessels and installations of government departments. Diesel used by the two power companies (i.e. CLP Power Hong Kong Limited and the Hongkong Electric Company Limited) and Hong Kong and China Gas Company Limited are also not covered by the Subsidy Scheme. The Subsidy Scheme will last for two months, starting from midnight on April30 (Thursday) to 11.59pm on June29 (Monday).
Implementation mechanism
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In Hong Kong, diesel is generally sold through oil companies and distributors. To ensure that eligible users can benefit as soon as practicable, the subsidy will lower the selling prices of diesel through the following two means:
- through the sale of diesel by specified oil companies to the users at their diesel filling stations and by means of direct sales; and
- through the sale of diesel by specified distributors to the users.
The following five specified oil companies will participate in the Subsidy Scheme (listed in no particular order):
- Sinopec (Hong Kong)’s affiliated companies;
- PetroChina International (Hong Kong) Corporation Limited;
- Chevron Hong Kong Limited;
- ExxonMobil Hong Kong Limited; and
- Shell Hong Kong Limited.
Under the Subsidy Scheme, eligible users receive a HK$3perlitre price subsidy by either purchasing diesel from diesel filling stations operated by specified oil companies or specified distributors, or purchasing diesel from specified oil companies or specified distributors delivered for local consumption.
The specified oil companies and specified distributors must clearly indicate the subsidy arrangement and the subsidy amount of HK$3perlitre on invoices and bills issued to eligible users for their information.
Information and contact details of each specified oil companies and registered specified distributors are at the Annex. As there may be other distributors applying to become a specified distributor, the Environment and Ecology Bureau (EEB) will update the list of specified distributors at its dedicated webpage (www.eeb.gov.hk/en/energy/Diesel_Subsidy_Scheme.html) from time to time for public information.
Auditing arrangements
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In order to ensure the proper use of public funds and protect the interests of eligible users, the Government has signed agreements with each specified oil companies and specified distributors, under which responsibilities and terms have been set out on the arrangements of implementing the Subsidy Scheme. These arrangements include the Government's payment of the price difference to the specified oil companies and specified distributors; the requirement for these oil companies and distributors to maintain complete and accurate books and records; the requirement to submit reports to the Government every week, as well as the auditing arrangements upon the completion of the Subsidy Scheme. These measures are to ensure that the subsidy could lower the actual selling prices accordingly. If it is found that there is a breach to the agreement, that there are anomalies in diesel transactions, or that the subsidy may be abused, the Government has the right to refuse or withhold payment of the subsidy amount to the concerned oil company and distributor, as well as to hold them liable. Moreover, the specified oil companies and specified distributors are required to submit to the Government an Assurance Report and an Audit Report prepared by an independent auditor within three months after the end of the subsidy period.
Distributor registration arrangement
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There are some distributors in the market who purchase diesel from the specified oil companies and then sell it to the users. The Government has established a distributor registration arrangement under the Subsidy Scheme to allow eligible users to receive the HK$3perlitre price subsidy from the specified distributors. Under this registration arrangement, distributors are required to provide the Government with their business registration details, confirm that they procure fuel directly from specified oil companies, and comply with the above auditing arrangements, to ensure that the subsidised diesel they supply to users is of known origin and traceable.
The specified distributors listed in the dedicated webpage of the Subsidy Scheme have provided information and been registered with the EEB, as well as entered into an agreement with the Government. For distributors who intend to sell subsidised diesel but have not yet been registered, please contact the EEB at diesel@eeb.gov.hk, or call the hotline at 3509 7600 to obtain a registration form, and submit the required information as soon as possible. Upon registration and verification, information of the distributors will be uploaded onto the registry of specified distributors on the Subsidy Scheme's dedicated webpage.
The Subsidy Scheme will end after 11.59pm on June 29 (Monday). All diesel sold by the specified oil companies and specified distributors participating in the Subsidy Scheme thereafter will not receive subsidies under the Subsidy Scheme.
Supply of LPG
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Currently, the LPG supply and stock levels remain generally normal. However, as affected by the situation in the Middle East, the international LPG prices surged in April 2026. The adjusted auto-LPG ceiling prices for Hong Kong's 12 dedicated LPG filling stations will be adjusted upward effective May 1, with an increase of approximately HK$1.06 to HK$1.08 per litre. The adjusted auto-LPG ceiling prices for all dedicated LPG filling stations would range from HK$4.49 to HK$5.43 per litre. Details of the LPG international price and the auto-LPG ceiling price for each dedicated LPG filling station has been uploaded onto the website of the Electrical and Mechanical Services Department (www.emsd.gov.hk) and posted at dedicated LPG filling stations to enable the trades to monitor the price adjustment.
Provision of LPG fuel subsidy
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To alleviate the operating costs of local passenger transport commercial vehicles which primarily use LPG as fuel (namely taxis, public light buses and school private light buses (commonly known as nanny vans)), and reduce the pressure for fare increases, the Government will provide a fuel subsidy of HK$0.5 per litre of LPG for taxis, public light buses and school private light buses for a period of two months.
The Government expects that about 16 900 LPG (including LPG-hybrid) taxis, about 3 440 LPG public light buses (including green minibuses and red minibuses), and about 170 LPG school private light buses would benefit from the fuel subsidy. The total amount of expenditure involved is approximately HK$38.4 million. The Government will redeploy internal resources to implement this initiative.
To provide the LPG subsidy in a simple and direct manner, the oil companies will provide a discount of HK$0.5 per litre of LPG directly at LPG filling stations for all LPG (including hybrid) taxis, public light buses and school private light buses. No registration or application is required. The Government will reimburse oil companies for the actual amount of LPG subsidies provided under this initiative. The fuel subsidy is expected to be launched within May, with the exact commencement date to be announced separately.
The oil companies will make appropriate arrangements and display posters at filling stations to inform taxi, public light bus and school private light bus drivers of the relevant arrangements. The Transport Department will also promote the arrangements to frontline drivers through various channels (including trade circulars).
Photo source: AI-created image
