Govt proposes fuel subsidies to help industries

The government on Thursday proposed subsidies for industries affected by the recent surge in fuel prices in a bid to help commercial vehicles and vessels running on diesel, as well as those using tunnels. Following a special meeting chaired by Chief Executive John Lee, the government proposed a subsidy of HK$3 per litre of diesel for two months. Such assistance for commercial vehicles and vessels, officials say, would cost an estimated HK$1.8 billion in public money. "[This is] to support diesel-powered public or commercial vehicles and vessels as well as related industries, thereby reducing their operating costs and alleviating pressure to raise prices," the government said in a statement. "At the same time, the Environment and Ecology Bureau will work with the Competition Commission to monitor the pricing practices of fuel companies, to ensure that they do not take advantage of the situation to make profits." The government also plans to halve the tunnel tolls for all commercial vehicles for two months, an initiative that would cost about HK$160 million. Both measures require the Legislative Council's approval. Legco has scheduled a finance committee meeting to vet the emergency funding proposal for Friday afternoon. In the meantime, officials will closely monitor the conflict in the Middle East and its effect on prices to make policy adjustments if necessary. They are also forming a working group designated to vet applications from public transport companies that may apply for efficiency improvements through service consolidation, as well as other energy-saving measures. Edited by Aaron Tam