KMB, Citybus say refined oil prices have nearly tripled, seek govt help

Kowloon Motor Bus and Citybus have warned that refined oil prices have surged nearly threefold since the Middle East war began in late February, putting unprecedented financial pressure on the franchised bus industry.

While crude oil prices have risen about 60 percent, refined oil prices – which directly affect bus operators – have soared from an average of US$90 per barrel in February to over US$200, peaking at US$255, the two bus companies said in a joint statement.

Before the war, fuel costs accounted for about 10 to 15 percent of fare revenue. That figure has now risen to about 30 percent. The companies noted that franchised bus operations have always operated on thin profit margins, and the surge in refined oil prices has caused a severe imbalance between revenue and expenditure.

The bus operators welcomed the government's recently announced fuel price relief measures, describing them as helpful in the short term. However, they predicted that high oil prices are unlikely to be resolved quickly and called for medium- to long-term discussions with the government on more effective solutions to ensure the sustainability of public transport services.