The Hong Kong government announced an 1.8 billion Hong Kong dollar diesel subsidy plan, starting tomorrow, with a subsidy of 3 Hong Kong dollars per liter of diesel fuel.

The Hong Kong Inter-Departmental Monitoring Task Force on Fuel Supply, established in response to the Middle East conflict, announced today (April 29) that it will implement a diesel subsidy plan of HK$3 per liter starting tomorrow (April 30). The plan will support public or commercial vehicles and vessels that run on diesel fuel, as well as related industries and businesses. The expenditure for this subsidy plan is estimated at around HK$1.8 billion, and it has already received funding approval from the Legislative Council Finance Committee. Additionally, based on the five principles previously announced, especially considering the impact on society, availability of alternatives for the public, and the temporary and limited nature of support, it is recommended to introduce measures within May to provide a subsidy of HK$0.5 per liter of liquefied petroleum gas for taxis, public light buses, and school private light buses for a period of two months, with specific dates to be announced later. The Chief Executive of Hong Kong has accepted this recommendation. The cost of this subsidy measure is expected to be around HK$38.4 million, and the government will allocate resources internally to implement this measure. A government spokesperson noted that the fuel supply in Hong Kong remains stable, and the Task Force will continue to assess the situation dynamically, closely monitor international developments and energy price trends, coordinate with various policy bureaus and departments to prepare response plans, make forward-looking arrangements, and study different measures to alleviate the impact of rising oil prices on society and people's livelihoods. Diesel subsidy plan: Under the subsidy plan, local users of diesel will receive a subsidy of HK$3 per liter when purchasing diesel, resulting in a reduction of HK$3 per liter in the selling price. The subsidy does not cover diesel used for purposes other than local use, resale, or by government vehicles, vessels, and facilities. Diesel used by the two power companies in Hong Kong (i.e. China Light & Power Company Limited and Hong Kong Electric Company Limited) and HK & CHINA GAS Limited will also not be eligible for the subsidy. The subsidy plan will last for two months, starting from midnight on Thursday, April 30, and ending at 11:59 pm on Monday, June 29. Implementation mechanism: Diesel in Hong Kong is generally sold by oil companies and distributors. To ensure that eligible users benefit as soon as possible, the subsidy will be implemented at two levels to reduce the diesel selling price: (1) Diesel sold by designated oil companies at their petrol stations and directly to users; and (2) Diesel sold by designated distributors to their customers. Five designated oil companies are participating in the subsidy plan (in no particular order): (1) Affiliated companies under Sinopec (Hong Kong); (2) PetroChina International (Hong Kong) Limited; (3) Chevron Hong Kong Limited; (4) ExxonMobil Hong Kong Limited; and (5) Shell Hong Kong Limited. Eligible users can receive HK$3 per liter subsidy regardless of whether they purchase diesel at the petrol stations of designated oil companies or designated distributors. Designated oil companies and distributors must clearly show the HK$3 per liter subsidy arrangement and amount on invoices and bills issued to eligible users. The information and contact details of the designated oil companies and registered distributors are listed in the appendix. As there may still be distributors applying to become designated distributors, the Environment and Ecology Bureau will periodically update the list of designated distributors on the dedicated webpage to inform the public. Audit arrangement: To ensure proper use of public funds and safeguard the interests of eligible users, the government has entered into agreements with designated oil companies and distributors to establish responsibilities and terms, clearly explaining the operational arrangements of the subsidy plan. This includes the government paying the price difference to designated oil companies and distributors, requiring oil companies and distributors to keep complete and accurate books and records, submit reports to the government each week, and providing audit arrangements after the subsidy plan is completed to ensure that the subsidy effectively reduces the actual selling price. If there are violations of the agreement terms, anomalies in diesel trading, or abuse of the subsidy, the government reserves the right to refuse or suspend payments to the oil companies and distributors and hold them accountable. Designated oil companies and distributors are also required to submit a "guarantee report" and an "audit report" signed by independent auditors to the government within three months after the end of the subsidy period. Distributor registration arrangement: Many distributors on the market purchase diesel directly from designated oil companies and then sell it to users. Under the subsidy plan, there is a distributor registration arrangement in place to allow eligible users to also receive a subsidy of HK$3 per liter from designated distributors. Under the registration arrangement, distributors must provide business registration information to the government, confirm direct purchase from designated oil companies, and comply with the aforementioned audit arrangements to ensure the clear origin and traceability of subsidized diesel provided to users. The designated distributors listed on the dedicated webpage of the subsidy plan have submitted information and registration to the Environment and Ecology Bureau and signed agreements with the government. If there are distributors wishing to sell subsidized diesel but have not yet registered, please email diesel@eeb.gov.hk or call the hotline at 3509 7600 to contact the Environment and Ecology Bureau for registration forms and submit the required information promptly. After registration and verification, distributor information will be uploaded to the list of designated distributors on the dedicated webpage. The subsidy plan will end at 11:59 pm on Monday, June 29. All diesel sold by designated oil companies and designated distributors after the subsidy period will no longer receive the subsidy under the plan. Liquefied petroleum gas supply: Currently, the supply and inventory of liquefied petroleum gas are generally normal. However, due to the impact of the Middle East situation, international liquefied petroleum gas prices have surged in April 2026. The maximum allowable price for liquefied petroleum gas at all twelve dedicated gas stations in Hong Kong will be increased on May 1, with an increase of approximately HK$1.6 to HK$1.8 per liter. The maximum allowable price of liquefied petroleum gas at each dedicated gas station in May will range from HK$4.49 to HK$5.43 per liter. The Electrical and Mechanical Services Department will upload details of the international liquefied petroleum gas prices and the maximum allowable prices of vehicle-use liquefied petroleum gas at each gas station to the department's website (www.emsd.gov.hk) and display them at each dedicated gas station for the public to monitor price changes. Subsidy measures for liquefied petroleum gas fuel: To reduce operating costs for local commercial vehicles (taxis, public light buses, and school private light buses) primarily powered by liquefied petroleum gas and alleviate price pressure, the government will provide a subsidy of HK$0.5 per liter of liquefied petroleum gas to taxis, public light buses, and school private light buses for a period of two months. The government estimates that the fuel subsidy measures will benefit approximately 16,900 liquefied petroleum gas (including mixed-fuel) taxis, about 3,440 liquefied petroleum gas public light buses (including green-specialized buses and red minibuses), as well as around 170 liquefied petroleum gas school private light buses. The implementation of this subsidy measure is expected to cost around HK$38.4 million, and the government will allocate resources internally to implement this measure. To provide the subsidy in a convenient manner, oil companies will provide a discount of HK$0.5 per liter of liquefied petroleum gas directly to all liquefied petroleum gas (including mixed-fuel) taxi, public light bus, and school private light bus drivers at gas stations, without the need for registration or application. The government will reimburse the actual amount refunded by the oil companies due to the subsidy measure. The subsidy measure is expected to be rolled out in May, with the specific date to be announced later. Oil companies will make appropriate arrangements at gas stations and petrol stations, with posters displayed to inform taxi, public light bus, and school private light bus drivers of the arrangements. The Transport Department will also promote these arrangements to frontline drivers through various channels, such as industry newsletters.