Some franchised bus operators submitted applications for fare adjustments earlier this year. According to media sources in Hong Kong, the applicants include KMB and Citybus, among which KMB has applied for a 6.5% fare increase, and the government is now scrutinizing the relevant fare increase applications.
The Transport Department (TD) responded earlier that the government would handle fare adjustment applications in a prudent manner and perform its gate-keeping role properly. TD also emphasized that the government has already exempted franchised buses from using government tunnels, and each franchised bus operator is required to credit the savings in tunnel tolls to its dedicated fund, i.e. the "Franchised Bus Toll Exemption Fund", so that when a franchised bus operator applies for a fare increase and the Chief Executive-in-Council considers that there is sufficient justification for an upward adjustment of the fares, it can first make use of the balance of the Fund to offset the rate of the fare increase, so that the rate of fare increase to be borne by passengers will be lowered.
According to the information available, KMB had about HK$450 million in its Franchised Bus Toll Exemption Fund account last year. Sources said that if the Fund is utilized to alleviate the fare increase, it is expected that the rate of increase will be offset by 2% to 3%.
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