Hong Kong will provide temporary LPG subsidies for taxis and light buses from May 31 to ease rising fuel costs.
The Hong Kong Special Administrative Region (HKSAR) government has announced the launch of a temporary subsidy scheme for liquefied petroleum gas (LPG), aimed at easing the financial burden on the city’s transport sector. Beginning May 31, eligible taxis, public light buses, and school private light buses that operate on LPG will receive a fuel subsidy of HK$0.5 per liter.
The temporary initiative will remain in effect for a two-month period and conclude at 11:59 pm on July 30. Authorities stated that the measure was introduced in response to ongoing instability in global energy markets, particularly following geopolitical tensions in the Middle East that have caused significant fluctuations in fuel prices worldwide. The subsidy plan was announced by the Inter-departmental Task Force on Monitoring Fuel Supply, a body established to oversee energy supply stability and address fuel-related concerns during periods of market disruption.
According to the government, approximately 16,900 LPG-powered and LPG-hybrid taxis will benefit from the subsidy program. In addition, around 3,440 LPG public light buses and 170 LPG school private light buses are also eligible to receive the financial support. Officials emphasized that these categories of commercial passenger vehicles rely heavily on LPG as their primary fuel source, making them particularly vulnerable to rising fuel costs.
A government spokesperson explained that the primary objective of the subsidy is to reduce operational expenses for transport operators and drivers while minimizing pressure for fare increases on passengers. By offering temporary relief from elevated fuel prices, the administration hopes to stabilize the local transportation sector and support public mobility during a period of economic uncertainty.
This LPG subsidy follows an earlier measure introduced by the HKSAR government on April 30, when authorities rolled out a diesel subsidy scheme for public and commercial vehicles as well as marine vessels using diesel fuel. That initiative was similarly designed to mitigate the impact of high energy prices linked to persistent geopolitical tensions in the Middle East.
Starting May 31, motorists eligible under the LPG scheme will automatically receive the HK$0.5 per liter discount at all 66 LPG filling stations operating across Hong Kong. The discount will be directly provided by participating oil companies at the point of purchase. Authorities confirmed that drivers and operators will not need to complete any registration or application procedures in order to enjoy the subsidy, ensuring a simple and efficient implementation process.
To facilitate the program, the HKSAR government has entered into formal agreements with six major oil companies, namely Sinopec, ExxonMobil, Shell, PetroChina, Chevron (Caltex), and Feoso. These agreements clearly define the responsibilities and operational requirements of each company to ensure transparency and proper management of public funds allocated to the subsidy scheme.
Under the arrangements, the government will reimburse participating oil companies for the exact amount of subsidy distributed to eligible LPG users. The companies are also required to maintain accurate financial records, submit weekly reports to the government, and comply with auditing procedures established to monitor the use of funds and prevent misuse.
Meanwhile, the Transport Department has worked closely with oil suppliers to complete the necessary technical upgrades and system testing ahead of the program’s launch. Authorities stated that these preparations are intended to ensure the smooth and efficient rollout of the subsidy at LPG filling stations throughout the city.
To raise awareness among drivers and transport operators, the Transport Department will display informational posters at licensing offices and LPG stations. Leaflets outlining the subsidy details will also be distributed at major taxi stands, public light bus stops, and dedicated LPG filling stations across Hong Kong.
