Hong Kong provides diesel subsidies and toll waivers

Hong Kong is providing HK$1.8 billion in diesel subsidies and toll waivers for commercial transport. The measures aim to mitigate the impact of rising fuel costs.

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The government of Hong Kong has introduced new measures to support the local transport sector as it grapples with rising fuel costs. The relief package includes a HK$3 per litre subsidy on diesel for commercial vehicles and vessels, alongside a 50% toll discount for commercial traffic at government-managed tunnels. These temporary measures are expected to span two months and carry an estimated cost of HK$1.8 billion.

Calculated against the USD/HKD exchange rate, the total fiscal impact reaches approximately $230 million. While commercial operators benefit, the government confirmed that private cars and motorcycles are excluded from the toll reductions, a move that is anticipated to result in HK$160 million in lost revenue.

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