Hong Kong bus operators seek fare hikes of up to 17.7% amid fuel price surge

Four franchised bus companies in Hong Kong have submitted applications to hike fares by up to 17.7 percent, claiming financial strain from soaring fuel costs due to the Middle East conflict. Citybus is requesting the highest increase at 17.7 percent, followed by KMB at 16 percent. Long Win Bus and New Lantao Bus are seeking rises of 8.1 percent and 9.8 percent, respectively, according to a report submitted to the Legislative Council on Wednesday.

The Transport and Logistics Bureau attributed the sharp rise in diesel prices to the Middle East conflict, which has put a burden on operators, causing significant financial pressure and operational difficulties. Fuel expenditures for the four companies increased by 85 to 132 percent over March compared to January, driven by a 75 to 134 percent surge in fuel purchase prices.

Secretary for Transport and Logistics Mable Chan assured that the government would play a vigilant role in reviewing the applications, considering public affordability. The proposed fare hikes come as all four companies reported significant declines in profit for the first half of 2025, with KMB projecting a 55 percent drop and Citybus estimating a 52 percent decrease.

The bureau stated that the franchised bus operators' financial situation is expected to remain challenging due to competition from other transport modes, rising operating costs, and high oil prices from the supply chain disruptions. The Legco transport panel will discuss the proposals on Friday, after which the government will submit its recommendations to the Chief Executive for approval.