Three major bus operators have submitted requests for fare increases, sparking concerns among commuters as the government weighs the implications on public transportation affordability.
In a recent report to the legislature, the Transport and Logistics Bureau revealed that KMB and New Lantao Bus are seeking fare hikes of 6.5 percent, while CityBus has proposed a more substantial increase of 9.5 percent. These applications, made earlier this year, come as the operators navigate a challenging financial landscape shaped by rising operational costs and intensified competition from alternative transport options.
During the first half of 2023, the franchised bus companies reported an average of approximately 3.7 million passenger trips daily, recovering to about 90 to 95 percent of pre-pandemic levels. Despite this rebound, the bureau highlighted that financial conditions for these operators remain “unsatisfactory,” attributing the challenges to escalating salary expenses and fluctuating fuel prices.
“The government has been actively assisting these firms in boosting income and reducing costs,” the bureau stated in its report. However, officials emphasized the need to balance public affordability with the financial sustainability of the bus operators as they consider the fare increase applications.
Lawmakers are set to discuss the fare requests on Friday, a topic that is likely to elicit strong opinions from both commuters and transport officials. Last year, fares were raised between 4 percent and 7 percent, marking a growing trend of fare adjustments as operators seek to maintain viability in a post-pandemic economy.
As discussions unfold, the future of public transport affordability hangs in the balance, with many passengers hoping for a solution that considers both their financial constraints and the operational needs of the bus services.
