Applications to raise fares across four franchised bus services range from 8.1% to 17.7%, with Citybus seeking the largest increase and Kowloon Motor Bus (KMB) asking for 16%. The bids were discussed by the Legislative Council’s transport panel on 16 October and remain under government consideration.
Lawmakers questioned the effect of the increases on passengers and proposed alternatives to folding short-term fuel swings into fares, including a fuel-price mechanism or temporary surcharge. Transport-sector lawmaker Lothair Lam suggested an annual bus-fare review modelled on the MTR’s. Deputy Secretary for Transport and Logistics Kirk Ip said a simple formula would not suit the different transport modes, operators and franchises.
The Transport and Logistics Bureau said fare applications would be assessed against fuel, labour and maintenance costs, their effects on operators’ finances and services, and passengers’ ability to pay. Service quality, including accident and missed-trip rates, would also be considered. A lawmaker cited KMB’s missed-trip rate and Citybus’s accident rate as having each exceeded the territory-wide average for two and a half consecutive years, and questioned whether that performance justified increases above 15%.
Operators pointed to sharply higher fuel bills. Martin Cadman, KMB’s operations director, told lawmakers the company was spending about HK$60 million more a month on fuel than at the start of the year. Long Win Bus Company’s monthly fuel costs were about HK$6 million higher, he said, more than double its spending a year earlier.
The government is also working with bus operators to develop non-fare income, including leasing depot space and installing charging facilities.
After consulting the Transport Advisory Board, the government will submit a final proposal to the Chief Executive and Executive Council.