Hong Kong taxi and light bus operators are facing a potential 33% increase in monthly operating costs after a two-month liquefied petroleum gas (LPG) subsidy scheme is set to expire on Friday.
Drivers have called on authorities to extend the financial support, citing persistent uncertainty surrounding conflicts in the Middle East that continue to weigh on global energy markets.
With Brent crude prices having breached $100 earlier in the month amid escalating geopolitical tensions, the removal of local support measures threatens to squeeze margins for drivers who operate on thin profit lines.
The expiration of the subsidy comes at a time when fuel costs remain a critical variable for transport operators.
With Brent crude prices having breached $100 earlier in the month amid escalating geopolitical tensions, the removal of local support measures threatens to squeeze margins for drivers who operate on thin profit lines.
The warning underscores the direct transmission of global energy shocks to local service sectors.
The situation highlights the broader sensitivity of emerging market transport networks to commodity volatility.