7 July 2000

Suppliers of ultra-low sulfur diesel (ULSD) fuel in Hong Kong have revised their import schedules and the new grade of fuel is expected to be available as early as this August.

On June 30, the Government adopted an import duty incentive program, to stimulate the use of ULSD fuel. An initial, concessionary duty of HK$1.11 per liter, 89 cents less than regular diesel, will be charged until 1 January 2001. It will then increase to $2, and to $2.89 per liter on 1 January 2002, bringing it alongside regular diesel. Currently, the duty on regular diesel is $2 per liter.

Importing the ULSD fuel is part of the Government’s program to achieve a “visible improvement” in air quality within 18 months.

Current sulfur level of motor diesel fuel in Hong Kong is 500 ppm (350 ppm effective 1 January 2001). The ULSD fuel has sulfur limit of 50 ppm.

Source: South China Morning Post