Hong Kong Bus Operators Propose Fare Hikes Amid Rising Fuel Costs
Bus operators in Hong Kong are seeking fare increases due to rising operating costs linked to the Middle East fuel supply disruptions. Legislators express concern over the impact on commuters.
Current State of Passenger Journeys
Passenger journeys on franchised buses in Hong Kong have not yet returned to pre-pandemic levels. In 2024 and 2025, an average of over 3.7 million daily bus journeys were recorded, falling short of the pre-pandemic average of approximately 3.92 million seen between 2010 and 2019.
Challenges for Bus Operators
The bus operators are facing a tough operational environment largely due to competitive pressures from alternative public transport modes. Additionally, they are grappling with escalating operational costs, including wages and fuel expenses, which have surged as a result of disruptions in the fuel supply chain influenced by ongoing conflicts in the Middle East.
The transport bureau emphasized the importance of enhancing the financial stability and sustainability of franchised bus services to maintain efficient operations. They noted that the Hong Kong government would carefully evaluate all relevant factors, such as fluctuating oil prices, when reviewing fare increase applications from bus operators.
Concerns Over Proposed Fare Increases
Politician Ben Chan Han-pan criticized the proposed fare increases as "exceptionally high", urging the Executive Council to closely examine these requests. He voiced concerns that such hikes would burden the public financially and disrupt daily life.
Chan suggested that without renewed government subsidies for the operators, it could be challenging to moderate the fare increases. He warned that this may lead to reduced service frequencies, directly affecting citizens’ commutes.
Alternative Approaches to Fare Adjustments
Former legislator Michael Tien Puk-sun advocated for a more transparent fare adjustment mechanism for franchised buses, similar to that used by the MTR. This formula considers various indicators, including inflation and wage changes, to determine adjustments.
“Such a method would streamline fare adjustments by removing the current lengthy debate process following applications to the Executive Council,” Tien explained, having previously chaired the Kowloon-Canton Railway Corporation.
In January, the Executive Council approved fare increases of 4.3% for KMB, and 6.5% and 7.5% for New Lantao Bus and Citybus respectively.
Next Steps for Fare Proposal Review
This Friday, the Legislative Council’s transport panel will review the fare increase proposals. The government aims to gather insights from lawmakers and the Transport Advisory Committee before forwarding its recommendations to the Executive Council for final approval.