Hong Kong commuters could face higher bus fares after the city's four franchised bus operators requested increases of up to 17.7 per cent, citing soaring diesel prices, falling profits and uncertainty over the war in the Middle East. The proposals put transport affordability back in focus as thousands of residents rely on buses for their daily journeys.
Kowloon Motor Bus (KMB), Citybus, Long Win Bus and New Lantao Bus submitted their fare increase applications to the government on Wednesday. Their requests range from 8.1 per cent to 17.7 per cent, according to a document presented to the Legislative Council.
Citybus is seeking the largest increase at 17.7 per cent, followed by KMB at 16 per cent. New Lantao Bus has requested a 9.8 per cent rise, while Long Win Bus is seeking an 8.1 per cent increase.
The applications come after fuel costs climbed sharply and the operators reported lower after tax profits in early 2026. The government must now decide whether the proposed increases are justified while considering how higher fares could affect passengers already managing their household expenses.
No fare increases have been approved as part of the applications, and the final decision rests with the authorities.
Hong Kong bus operators face soaring diesel costs
Rising diesel prices are at the centre of the operators' requests. According to the Legislative Council document, diesel prices increased by between 75 per cent and 134 per cent among the four companies, while their fuel expenditure rose by between 85 per cent and 132 per cent.
The increases have added pressure to an industry that must maintain regular services while managing operating expenses. Fuel is a recurring cost for conventional bus fleets, so sustained price rises can quickly affect a company's finances.
The government previously provided a diesel subsidy of HK$3 per litre for two months. The scheme ended on June 29, 2026, but the operators say fuel costs remain a serious concern.
The companies also pointed to uncertainty surrounding the war in the Middle East, which has affected expectations for global oil prices.
“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],” the Legislative Council document stated.
Higher oil prices can increase transport costs when fuel becomes more expensive. However, the duration of the current pressure remains uncertain, and the document does not establish how much future diesel prices will change.
For the bus operators, the immediate concern is how to cover higher expenses without compromising their ability to run services. Their applications seek to address that pressure through increased fare revenue, although the government has yet to determine whether the requested rises are reasonable.
Citybus seeks 17.7% increase as profits fall
Citybus has submitted the largest request, seeking a 17.7 per cent fare increase. KMB follows with a proposed 16 per cent rise, while New Lantao Bus and Long Win Bus have requested increases of 9.8 per cent and 8.1 per cent, respectively.
The differences between the applications suggest that the companies are presenting separate financial cases for higher fares. However, the information provided in the Legislative Council document does not include a complete breakdown of each operator's costs, revenue and projected financial performance.
The operators reported that their after tax profits fell by between 20 per cent and 30 per cent in the first quarter of 2026 compared with the same period in 2025.
Lower profits can reduce a company's ability to absorb further increases in operating expenses. Yet a fare increase also transfers some of that pressure to passengers, making the government's assessment particularly important.
Officials will need to consider whether the companies can improve their finances through cost controls or additional revenue, as well as whether the proposed increases reflect their expected operating conditions.
The percentages alone do not show how much an individual passenger would pay for a particular journey. The actual additional cost would depend on the existing fare and the final increase approved for the relevant service.
Will Hong Kong commuters pay more for bus journeys?
For passengers, the main concern is straightforward: how much more could daily travel cost if the government approves the applications?
A percentage increase affects fares differently depending on the price of the journey. Regular commuters who take buses several times a day could see the effect accumulate over a week or month, while occasional passengers might experience a smaller overall increase.
The financial impact would also vary between households. People who depend on buses because they have limited alternatives could find it harder to adjust their travel spending than passengers who can switch easily to other forms of transport.
The operators' applications come after KMB, Citybus and New Lantao Bus last raised fares in January 2025. Another round of increases would mean passengers facing higher charges again if the government grants the requests.
However, the current applications do not establish that every route will receive the same percentage increase or that all four companies will obtain the full amounts they have requested.
Secretary for Transport and Logistics Mable Chan told the Legislative Council that the government takes both the reliability of bus services and the financial sustainability of operators seriously. She also stressed the importance of keeping public transport affordable.
“We will certainly strictly exercise our gatekeeping role in this regard,” Chan said.
She added that officials would examine a range of factors, particularly the operators' future operating conditions and their forecasts for costs and revenue.
Bus passenger numbers remain below pre pandemic levels
Fuel expenses are not the only challenge facing Hong Kong's franchised bus industry. Passenger journeys have increased slightly in recent years but have yet to return to pre pandemic levels.
The Legislative Council document recorded an average of 3.7 million passenger journeys per day across the industry in 2024 and 2025. That compared with approximately 3.67 million daily journeys in 2023.
The document attributed the continuing shortfall partly to competition from other public transport options and changes in passenger travel patterns.
Rail services, minibuses and other forms of transport give residents alternatives for some journeys. The options available depend on where passengers live, where they need to go and how much time they have.
These choices affect bus companies because passenger numbers influence fare revenue. Even when a network carries millions of journeys each day, changes in demand across individual routes can affect how much income operators collect.
The figures do not establish how much passenger numbers would change if fares rise. They also do not show whether a particular increase would lead passengers to switch to other services.
That uncertainty adds another consideration to the government's review. Higher fares may generate more income per journey, but the overall effect would depend partly on how passengers respond.
Government weighs bus company finances against affordability
Chan said the government would assess the applications carefully, examining the operators' financial forecasts and the conditions in which they expect to operate.
That approach means the companies' reported fuel costs and profit declines will form part of a broader assessment rather than automatically determining the outcome.
The government must consider the cost of maintaining services, the revenue available to operators and the effect of fare changes on residents. It must also consider whether the requested increases are proportionate to the financial pressures described by the companies.
The available document does not specify when authorities will announce their decision or whether they intend to approve, reduce or reject any of the proposed increases.
For passengers, the distinction matters. The applications establish what the operators want, not what commuters will ultimately have to pay.
Transport panel chairman urges operators to find savings
Ben Chan, chairman of the Legislative Council's transport panel, called on the Executive Council and the Chief Executive to balance the financial sustainability of bus operators with passengers' ability to afford public transport.
He also urged the companies to explore ways to reduce the impact of higher fuel costs, including generating more income from sources other than fares.
Non fare revenue could help operators diversify their income and reduce their reliance on passenger payments. However, the Legislative Council document did not identify specific new revenue projects or estimate how much additional income such measures might produce.
Companies could examine opportunities to improve operational efficiency or develop other commercial income sources, depending on their individual circumstances. Any measures would need to be assessed against the costs of implementation and their likely financial returns.
Such steps would not necessarily eliminate the pressure from higher diesel prices, but they could form part of a broader effort to manage operating expenses without relying entirely on fare increases.
Bus operators must also continue providing the services required under their franchises. Their financial position therefore needs to be considered alongside the practical needs of passengers who depend on buses to reach work, schools, shopping districts and transport interchanges.
What happens next to Hong Kong bus fares?
Hong Kong's four franchised bus operators have requested increases of between 8.1 per cent and 17.7 per cent after reporting sharp increases in diesel costs and lower first quarter profits. Passenger journeys have recovered slightly from 2023 levels, but the industry says demand remains below the pre pandemic level.
The government has pledged to scrutinise the applications, taking account of operating expenses, revenue forecasts, service reliability and passenger affordability. Until officials announce their decision, commuters should treat the proposed percentages as requests rather than confirmed fare changes.
The decision will determine how much of the operators' rising costs may be passed on to passengers and whether companies will be expected to do more to control expenses or develop alternative income sources.
What do you think Hong Kong should prioritise: keeping bus fares affordable, approving increases to support operators, or requiring bus companies to find more savings before raising fares? Share your view.