Hong Kong will pay diesel subsidies directly to oil firms, look out for abuse
Government will know if oil firms try to take advantage of HK$3 subsidy scheme by increasing prices, official warns
Hong Kong will directly pay diesel subsidies to local oil companies based on sales volume after lawmakers approved a massive HK$1.8 billion government scheme to ease rocketing fuel prices for the transport sector over the next two months.
The city’s environment minister maintained that a mechanism would be in place so the government could “know” and “monitor” if the oil companies tried to abuse the scheme by increasing prices, but did not say how.
Senior government officials briefed lawmakers at a Legislative Council Finance Committee meeting on Friday regarding the HK$1.8 billion emergency funding request for the diesel subsidy scheme, set to launch late this month. Officials said the subsidies would not be backdated, despite the funding being approved on Friday.
Many local firms are reeling from the sharp rise in global oil prices since the United States and Israel attacked Iran on February 28.
Under the scheme, the government will offer a subsidy of HK$3 per litre of diesel for two months to support public and commercial vehicles and vessels that use the fuel. Private cars are not covered.
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Acting financial secretary Michael Wong Wai-lun said the government aimed to help “operational sectors involving public services” that were most severely affected to ensure prudent use of public money.