In a rare and speedy move, the Hong Kong government is pressing ahead with diesel subsidies and toll cuts for the commercial transport sector as the global oil crisis escalates. The short-term measures are timely, targeted and reasonable. They are exactly what the industries need as they grapple with soaring fuel prices fuelled by conflict in the Middle East.

The two-month HK$3 (US$0.38) per litre diesel subsidies for public and commercial vehicles, vessels and related industries as well as half-price tunnel tolls for buses, minibuses, taxis and goods vehicles were announced on Thursday and tabled at the legislature for scrutiny yesterday. Private vehicles are not a priority for support at this stage, and understandably so.

This is not the first time the authorities have resorted to extraordinary measures at extraordinary times. The package, expected to cost HK$1.96 billion in spending and revenue foregone, came after Chief Executive John Lee Ka-chiu chaired a meeting with the Inter-departmental Task Force on Monitoring Fuel Supply.

It is good that officials have moved beyond merely tracking oil price fluctuations for the public. But there is a need to enhance transparency in pricing to ensure the subsidies benefit users rather than oil companies. The Environment and Ecology Bureau will work with the Competition Commission to monitor pricing to ensure oil companies do not take advantage of the subsidies.

With 80 per cent of oil products coming from the mainland, supply remains stable. However, the heavy reliance on fuel imports amid soaring prices has put pressure on the transport, logistics, fishing, laundry and other sectors, threatening livelihoods. According to GlobalPetrolPrices.com, Hong Kong ranked No 1 in the world for petrol prices, at US$4.134 per litre as of Monday.

No one can predict how the two-week truce between the United States and Iran will pan out. Even if the situation continues to stabilise, supply chains remain fragile. The government will establish a working group to assist public transport operators with their applications. It will also consider ways to enhance their overall operational efficiency.