Global Markets
Home›Global Markets›Asia›Hong Kong taxi drivers seek extension of LPG fuel subs…
Hong Kong taxi drivers seek extension of LPG fuel subsidy
The subsidy, set to expire Friday, would have covered about 16,900 taxis and 3,440 minibuses.
Hong Kong taxi and minibus drivers are urging the government to extend a two-month liquefied petroleum gas (LPG) subsidy as they warn monthly operating costs could rise sharply when the policy ends. The scheme is scheduled to expire on Friday, according to coverage by SCMP Economy.
SCMP Economy reports the subsidy was rolled out by a government task force on May 31, offering a 50 HK cents per litre rebate on LPG at the pump for taxis and minibuses. It was expected to benefit about 16,900 taxis, around 3,440 green and red minibuses, and about 170 school buses.
Drivers cited heightened uncertainty around Middle East conflict and potential oil price volatility. Hong Kong Taxi Owners’ Association chairman Wong Po-keung said operating costs for cabbies could rise by 10 per cent after the scheme ends, while income could fall by 15 per cent.
Wong also warned that without a renewed subsidy, the financial burden on drivers would be serious. He added that he had called for an extension earlier in July but had not yet received a reply, SCMP Economy said.