'Fuel costs, falling revenue behind fare hike bids'
Bus operators said a sharp rise in fuel costs has created a huge financial burden and other revenue streams were also falling, as the four firms seek fare increases with Citybus applying for the highest rise of 17.7 per cent. Appearing before the Legislative Council's transport panel on Friday, representatives from the bus operators said fuel prices had risen sharply, causing significant…
Bus companies are seeking fare increases to offset rising fuel costs and falling revenue, with Citybus proposing the highest hike of 17.7%. Fuel prices have surged, adding about HK$60 million monthly to operators' expenses, double the increase from last year. While one bus company's fuel costs nearly eliminated their modest profits, other factors such as changing travel patterns and competition from MTR's new rail lines have also contributed to revenue declines.
The government will review fare applications with public acceptability and financial sustainability in mind, rejecting proposals outright. Lawmakers have criticized the proposed increases, calling them "jaw-dropping" and questioning if the government will subsidize fuel costs, as different transport modes and operators operate under distinct franchises and service areas.
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