Hong Kong taxi and minibus drivers demand LPG subsidy extension as costs set to rise 33%
16,900 taxis face 33% cost hike if 50 HK cent per litre LPG rebate expires Friday
Hong Kong taxi and minibus drivers have issued a stark warning: if the government does not extend the current liquefied petroleum gas (LPG) subsidy scheme beyond its Friday expiry, monthly operating costs could spike by up to 33%. The subsidy, rolled out on May 31 by a government task force, grants a 50 HK cent (6 US cent) per litre rebate on LPG for taxis, minibuses, and school buses. It was introduced to cushion the impact of rising fuel prices triggered by the US-Israel-Iran war that began in late February. The scheme covers approximately 16,900 taxis, 3,440 minibuses, and 170 school buses.
Industry leaders, including Wong Po-keung, chairman of the Hong Kong Taxi Owners’ Association, warn that operating costs for cabbies would rise by 10% immediately after the subsidy ends, while incomes could drop by 15%. Additional burdens include the recent expiration of tunnel fee waivers. Wong noted that the ongoing Middle East conflict keeps oil prices unpredictable, making an extension essential. He had earlier petitioned the government but received no response. Without intervention, drivers warn that higher costs will likely be passed on to passengers, adding pressure to Hong Kong's transport sector.
- Two-month LPG subsidy providing 50 HK cent per litre rebate expires Friday, affecting 16,900 taxis, 3,440 minibuses, and 170 school buses.
- Monthly operating costs for taxi drivers could increase by up to 33% without the subsidy, plus tunnel fee waivers already ended.
- Industry leaders cite ongoing Middle East conflict (US-Israel-Iran war) as keeping oil prices high, making subsidy extension critical to avoid burdening drivers and passengers.
Why It Matters
Without extension, Hong Kong's transport costs could surge 33%, squeezing driver incomes and likely raising fares for millions of daily commuters.