Hong Kong bus firms seek fare increases

Hong Kong’s two franchised bus companies, Kowloon Motor Bus and Citybus, were said to have asked for fare increases ranging from 6.5 percent to 9.5 percent, while lawmakers slammed the hike to be much higher than the city’s inflation rate.

According to sources, KMB wants to raise fares by 6.5 percent and Citybus is seeking a 9.5 percent fare rise.

KMB said it has submitted an application to the government over the adjustment in bus fares, adding it is very cautious with the price hike, which took into account the financial sustainability needs of the firm and public acceptance.

Meanwhile, Citybus said it applied for a fare adjustment in January this year to cope with the pressures of rising costs such as fuel and wages, but the application is still pending approval. It also noted that the fares have remained unchanged for over a year, with the firm calling for an annual fare review to cope with changes in commodity prices and operating costs.

Commenting on the possible fare hike, Roundtable lawmaker Michael Tien Puk-sun said the fare hike requested by the bus firms far exceeds the inflation rate.

He said KMB raised fares by 3.9 percent starting in April 2023, while Citybus increased fares by 4.9 percent. In comparison, the inflation rate was 2.1 percent in 2023 and is projected to be 1.3 percent in 2024, totaling approximately 3.4 percentage points - a level that he considered to be more reasonable.

However, Tien said the government typically negotiates on the numbers and he expects the Executive Council to handle the applications early next year, adding it would be more ideal for the fare increase to take effect in April or later.

The lawmaker also believes that the current practice of both bus companies regularly applying for fare increases, with significant increments, creates a negative perception among the public.

He suggested that in the long term, a mechanism should be established similar to the MTR's, which allows for fare adjustments based on inflation data.