'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…
Four bus operators in Hong Kong are seeking fare increases, citing soaring fuel costs and falling revenue as primary drivers. Citybus is proposing the highest rise of 17.7 percent, while Long Win Bus Company expects to pay approximately HK$6 million more in fuel each month. Kowloon Motor Bus' operations director, Martin Cadman, explained that even a modest increase in oil prices can wipe out modest profits.
Bus representatives also pointed to changing travel patterns as a factor contributing to falling revenues. Citybus' managing director, William Chung, cited the opening of MTR's South Island Line and Sha Tin to Central Link as taking away many bus passengers. The government's Deputy Secretary for Transport and Logistics, Kirk Ip, stated that fare applications would be reviewed prudently, considering public acceptability and operators' financial sustainability.
Ip noted that different public transport modes and bus companies operate under different franchises, making a simple formula unsuitable. Several lawmakers criticized the proposed fare increases as excessive and questioned whether the government would subsidize fuel costs.
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