Diesel subsidy ends; trucking industry calls for more direct support

The government's temporary diesel subsidy scheme has come to an end.

While international oil prices have eased slightly in recent weeks, the freight sector is urging authorities to consider direct vehicle-based subsidies as a longer-term solution to rising operating costs.

Under the two-month scheme, the government offered a subsidy for every litre of diesel sold.

Fuel stations and distributors factored in the subsidies via discounted pump prices or billing adjustments, with distributors reimbursed for the difference.

The scheme expired on Monday night.

Global oil prices surged earlier amid tensions in the Middle East, reaching a peak in May before stabilising and retreating slightly.

According to fuel price information published online by the Consumer Council, discounted retail diesel prices offered by major oil companies currently range from around 21 to 32 dollars per litre.

Industry representatives say fuel expenses at one point nearly doubled compared with pre-conflict levels.

Although prices have since fallen, it's roughly 40 percent higher than before.

A representative from the Lok Ma Chau China-Hong Kong freight association says the diesel subsidy has helped, but it did not cover the entire transport sector.

As cross-boundary trucks, for example, were not eligible because most of them refuelled in the mainland during this period, the body calls on the government to consider providing subsidies based on vehicle size.

The government says it would continue to monitor developments in the Middle East, as well as fuel supply and price movements, to ensure a stable energy supply for Hong Kong.

As for time-limited relief measures including toll concessions for commercial vehicles and subsidies for liquefied petroleum gas fuel, authorities say further arrangements would be announced in due course.