Hong Kong taxi and minibus drivers have called for an extension of a two-month liquefied petroleum gas (LPG) subsidy scheme, warning that monthly operating costs could rise by up to 33% once the policy ends. The subsidy, introduced by a government task force on May 31, provides a rebate of 50 HK cents per litre on LPG at the pump for taxis, minibuses, and school buses. It was implemented in response to price volatility caused by the ongoing United States-Israel conflict involving Iran that began in late February.
The policy, set to expire on Friday, benefits approximately 16,900 taxis, 3,440 green and red minibuses, and about 170 school buses. Wong Po-keung, chairman of the Hong Kong Taxi Owners’ Association, stated that operating costs for taxi drivers would increase by 10% after the subsidy ends, while their income is expected to fall by 15%.
“The conflict is still going on in the Middle East, and no one knows when oil prices will come down,” Wong said. “Our operating costs have gone up because of this. If the government doesn’t have a subsidy in place, the burden on drivers will be very serious.” He also mentioned that he had requested an extension of the subsidy earlier this month but had not yet received a response.
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