Hong Kong’s four franchised bus operators have applied for fare hikes of up to 17.7 per cent as they face “significant financial pressure” from soaring fuel prices amid the ongoing war in the Middle East.

Buses outside department store Sogo in Causeway Bay. File photo: Kyle Lam/HKFP.

The city’s four bus operators — Kowloon Motor Bus (KMB), Citybus, Long Win Bus, and New Lantao Bus — submitted applications to the government on Wednesday for fare increases ranging between 8.1 and 17.7 per cent.

The fare hike applications were triggered by a sharp rise in diesel prices as fuel costs jumped 75 to 134 per cent among the four bus operators, driving up fuel expenditures by 85 to 132 per cent, according to a document submitted to the Legislative Council.

That was despite the government providing a subsidy of HK$3 per litre of diesel that ran for two months until June 29 this year.

After-tax profits dropped by 20 to 30 per cent in the first quarter of 2026, compared to the same period last year, the document read.

“Amid the uncertain trajectory of the war in the Middle East, oil prices are expected to remain at a relatively high level, persistently affecting the financial position of all [bus operators],” it read.

Of the four operators, Citybus is seeking the largest increase at 17.7 per cent, while KMB has requested a 16 per cent hike. New Lantao Bus is asking for 9.8 per cent, and Long Win has applied for an 8.1 per cent increase.

Passenger numbers lag

The document also said that the industry recorded 3.7 million average daily passenger journeys in 2024 and 2025, representing a slight increase compared to about 3.67 million in 2023.

Secretary for Transport and Logistics Mable Chan. File photo: GovHK.

“However, the passenger journeys had yet to return to the pre-pandemic level,” the document read. “Such passenger figure reflects the competition faced by the franchised bus industry from other public transport modes, as well as the structural changes in the travelling pattern of passengers.”

KMB, Citybus, and New Lantao last hiked fares in January last year.

Speaking at the Legislative Council, Secretary for Transport and Logistics Mable Chan said that the government attaches great importance to the reliability and financial sustainability of bus operators, and is paying close attention to passenger affordability.

“We will certainly strictly exercise our gatekeeping role in this regard. Of course, we will look at a basket of factors, particularly examining the future operating conditions of franchised buses as well as their cost and revenue forecasts,” she said.

Ben Chan, chairman of the legislature’s transport panel, urged the Executive Council, which approves fare hikes along with the Chief Executive, to balance the operators’ sustainability with passenger affordability.

He added that he hoped the bus operators would find ways to mitigate the impact of rising fuel costs, for instance by exploring other means of non-farebox revenue.