Diesel subsidy for commercial vehicles among measures proposed in Hong Kong to ease fuel price impact

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This is one of the four short-term, targeted measures proposed by Hong Kong Government’s Task Force.

To help affected industries cope with escalating fuel costs, the Inter-departmental Task Force on Monitoring Fuel Supply (the Task Force), which was earlier established by the Hong Kong Special Administrative Region (HKSAR) Government, has proposed four targeted temporary measures to Chief Executive John Lee at a special meeting on 9 April 2026.

The Chief Executive has since accepted all four recommendations; however funding is still to be discussed. 

The four recommended measures include:

1. Two‑month diesel subsidy

The Task Force recommended a HK$3‑per‑litre diesel subsidy for two months to support public and commercial vehicles and vessels and related industries that use diesel as fuel. Beneficiaries will include:

• trucks
• franchised and non‑franchised buses
• minibuses
• ferries
• passenger ships
• work boats
• fishing vessels

The Government will continue monitoring the pricing practices of each fuel company to ensure that they do not take advantage of the occasion.

As for the majority of taxis and public light buses, which mainly use liquefied petroleum gas (LPG) as fuel, the Task Force will continue tracking LPG price movements and consider the matter further where appropriate.

2. 50% tunnel toll reduction for commercial vehicles

Tunnel tolls at all government-operated toll tunnels will be halved for all commercial vehicles – including goods vehicles, buses, minibuses, and taxis – for a period of two months. Private cars and motorcycles will not be included in this measure.

3. Establishment of a Public Transport Service Special Applications Working Group

A new Working Group on Public Transport Service Special Applications will be set up under the Task Force to expedite approval of relevant applications submitted by public transport operators in response to rising fuel costs. Its mandate includes considering ways to enhance overall operational efficiency through service integration and introducing energy-saving measures.

4. Ongoing monitoring and contingency planning

The Task Force will continue dynamic assessments of the evolving situation and changes in oil prices, coordinate bureaux and departments to prepare contingency plans, and adjust measures according to actual circumstances.

On the way forward for these recommendations, as reported, the Finance Committee of the Legislative Council is scheduled to meet this afternoon (10 April 2026) to review the HK$1.8bn in funding required for the diesel subsidy.

The Government will also work with toll service providers to update toll collection systems so the toll reduction can be implemented as quickly as possible. The measure is expected to reduce government revenue by approximately HK$160mn.