The government announced on Wednesday said a two-month fuel subsidy for taxis, minibuses and school vans running on liquefied petroleum gas (LPG) will start on Sunday.

It said that oil companies will offer a HK$0.50 discount for each litre of LPG at all 66 filling stations, and there's no need to apply or register.

“The temporary measure aims to alleviate the operating costs of local passenger transport commercial vehicles which primarily use LPG as fuel, and reduce the pressure for fare increases,” a government spokesman said in a statement.

About 16,900 cabs, 3,440 minibuses and 170 school buses stand to benefit.

Oil companies must submit weekly reports to the government as well as auditing arrangements upon the end of the subsidy period. They are also required to keep complete and accurate books and records.

"The Transport Department has steered the oil companies in completing the necessary system enhancements and testing to ensure smooth implementation," the spokesman added.


Edited by Edmond Fong