Three of Hong Kong’s public bus operators have applied for fare increases of 6 to 9.5 percent, according to local media reports on Wednesday. The Legislative Council is expected to deliberate on the issue next Friday, and lawmakers have suggested that any price increases should be affordable and close to the inflation rate.
Citybus, Kowloon Motor Bus Company (KMB), and New Lantao Bus have requested increases of 9.5 percent, 6.5 percent, and over 6 percent this year.
The Executive Council approved all of the city’s five franchised bus operators, including the above three, to increase fares in May last year, with increases of 3.9 to 7 percent. KMB had requested a 9.5 percent increase but was permitted to raise its fares by an average of 3.9 percent.
Lawmaker Chan Han-pan, chairman of LegCo’s transport panel, suggested that the special administrative region government take into account this year's inflation rate of about 2.5 percent, the financial condition of the bus companies, and other sources of income when evaluating their applications.
Chan proposed that Citybus consider offering monthly passes to encourage the public to travel on buses more often, ensuring stable levels of revenue.
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Lawmaker Gary Zhang Xinyu said that data shows bus firms are faring well in terms of fuel costs, patronage and revenue.
The government has substantially lowered toll costs for bus companies using tunnels that the government has taken over, such as the Western Harbour Crossing, which is expected to ensure significant cost savings.
Zhang said he hopes that bus companies review their financial situation to avoid excessive fare increases, adding that it would be more reasonable to keep fare increases closer to that of inflation.
Lawmaker Michael Tien Puk-sun advised the government to establish a long-term mechanism that allows bus companies to raise prices once a year based on inflation. If the public’s median wage increase fails to keep up with inflation, he proposed capping the fare increase at the rate of the wage increase to ensure affordability for the public.
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The government has waived the tolls for franchised buses since 2019, and the savings are diverted to the Franchised Bus Toll Exemption Fund.
According to the available information, KMB has saved HK$450 million ($57.9 million) in its toll fund account till 2023, and it is estimated that utilizing the fund would offset the rate of increase by 2 to 3 percent. Citybus’ two franchise accounts have accumulated HK$1.4 million under this fund, and it is estimated that utilizing the fund would offset the rate of increase by 1 to 1.5 percent.
Responding to media inquiries, Citybus said it had not adjusted fares for over a year, while it shouldered significant inflationary pressure, including increased wage, fuel, and supply-chain costs.
A spokesperson said that the company has increased salaries in each of the past three years to ensure it had sufficient personnel, adding that the annual price increase is necessary for maintaining a financially viable bus operation that does not require government subsidies.
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KMB said that the rate of applied adjustment was prudent, citing challenges such as falling passenger numbers, continuous increase in employees’ salaries and unstable fuel prices.
A spokesperson said the company hoped that the government processes the applications as soon as possible and suggested the authorities consider utilizing the Franchised Bus Toll Exemption Fund to reduce passengers’ burden.
Marcus Chung Pok-lun, 22, who lives and works in Southern District, said he spends about HK$200 on bus fares each month. He said he thinks that any fare increase is unreasonable, given stagnant wages and increasing daily expenses. “The fare was increased last year, and it seems to be an ongoing trend. The cumulative amount adds up to a lot of money,” said Chung.
May Wong, another resident in Southern District, agreed that the proposed 6.5 percent increase on KMB buses is excessive and will affect those who travel on buses regularly, particularly those who face lengthy commutes to work.
