Source: Hong Kong Government special administrative region
Diesel Subsidy Scheme to end on June 29 as scheduled
Since the outbreak of the conflict in the Middle East region, the Government has been closely monitoring geopolitical changes and tracking fuel supply and price fluctuations. The Task Force, led by the Financial Secretary, was established to dynamically assess geopolitical development and fuel supply and prices, to ensure the stability of Hong Kong’s energy supply, and to closely examine the impact of oil price fluctuations on various industries.
In formulating support measures, the Task Force took the following principles into account:
(1) Given that fluctuations in crude oil prices have a broad impact across society and considering the Government’s fiscal constraints, priority should be given to the operational sectors that are most severely affected and that involve public services;
The United States and Iran both announced the re-opening of the Strait of Hormuz after having signed a Memorandum of Understanding. Based on the latest futures market data, the Government Economist estimates that international refined oil prices for diesel would gradually decline for the remainder of the year.
As the support measures are temporary and time-limited in nature, and to prevent risks to public finances, the Task Force decided that the Scheme will end at 11.59pm on June 29 as scheduled upon the expiration of the two-month period. The Task Force will continue to dynamically assess the situation in the Middle East region, and fuel supply and prices, so as to ensure the stability of Hong Kong’s energy supply.
The Government will make announcement in due course on the arrangements of the other two time-limited measures, i.e. toll waiver for commercial vehicles and liquefied petroleum gas fuel subsidy.
Issued at HKT 11:45
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