Diesel Subsidy Scheme

Diesel Subsidy Scheme (“Subsidy Scheme”)
 

Support public and commercial vehicles and vessels and related industries that use diesel as fuel, with a view to alleviating the impact of high oil prices on relevant industries in light of the conflict in the Middle East region. Please refer to the linked discussion paper for the Finance Committee of the Legislative Council for details.

The Subsidy Scheme will run for two months, starting from 12:00am on 30 April (Thursday)^*1 to 11:59pm on 29 June (Monday).

*1: Certain individual oil company or distributor may not be able to start selling subsidised diesel with effect from 12:00am on 30 April (Thursday) as it may takes time to adjust their internal systems.  In the case of doubt, customers are advised to inquire directly with specified oil companies or specified distributors.  All diesel sold by the specified oil companies and specified distributors participating in the Subsidy Scheme will not receive subsidies under the Subsidy Scheme after 11:59pm on 29 June (Monday).

Users who consume diesel locally may receive a subsidy of HK$3 per litre of diesel when they purchase diesel to make the selling price decrease by HK$3 per litre accordingly. The Subsidy Scheme does not apply to diesel used for non-local consumption, for resale, and for vehicles, vessels and installations of Government departments. Diesel used by the two power companies (i.e. CLP Power Hong Kong Limited and the Hongkong Electric Company Limited) and Hong Kong and China Gas Company Limited are also not covered by the Subsidy Scheme.

The subsidy will lower selling prices of diesel through the following two means –

Under the Subsidy Scheme, eligible users receive the HK$3 per litre price subsidy by either purchasing diesel from diesel filling stations operated by specified oil companies or specified distributors, or purchasing diesel from specified oil companies or specified distributors delivered for local consumption.

(In alphabetical order of English names of oil companies)

Registry of specified distributors^*2:

*2:  The eligibility of those specified distributors in the list has all been confirmed by the Government through the registration system.  Distributors who intend to sell subsidised diesel but have not yet been registered, please email to diesel@eeb.gov.hk or call the hotline 3509 7600 for obtaining a registration form.  Upon the completion of registration and verification, details of the distributors will be uploaded onto the registry of specified distributors.

The Government has signed agreements with specified oil companies and specified distributors, under which responsibilities and terms have been set out on the arrangement of implementing the Subsidy Scheme. These include the Government’s payment of the price difference to the specified oil companies and specified distributors; the requirement for these oil companies and distributors to maintain complete and accurate books and records; the requirement to submit regular reports to the Government at least once in a month, as well as the auditing arrangement upon the completion of the Subsidy Scheme. These measures are to ensure that the subsidy could lower the actual selling prices accordingly. If it is found that there is a breach of the agreement, that there are anomalies in diesel transactions, or that the subsidy may be abused, the Government has the right to refuse or withhold payment of the subsidy amount to the concerned oil company and distributor, as well as to hold them liable. Besides, the specified oil companies and specified distributors are required to submit to the Government an Assurance Report and an Audit Report signed and issued by an independent auditor within three months after the end of the subsidy period.

Please email diesel@eeb.gov.hk, or call the hotline 3509 7600, for any enquiries on the Subsidy Scheme.