Four franchised bus operators have submitted fare-hike applications to the government, proposing rises of 8.1% to 17.7%. KMB seeks a 16% increase, Citybus 17.7%, Long Win Bus 8.1%, and New Lantao Bus 9.8%. The government is reviewing these proposals.
In response to enquiries on Oct. 14, KMB and Long Win Bus said steep fuel-cost hikes have hurt their operating finances. Their fare-adjustment bids aim to preserve financial stability and future growth, and they urged the government to approve the applications quickly to keep bus services stable.
KMB and Long Win Bus noted that fuel expenditure accounts for a major portion of franchised bus operating expenses. Following the outbreak of the Middle East crisis in late February this year, global crude and refined oil prices saw sharp surges and heightened volatility. While benchmark crude prices moved within a range of roughly US$80-100 per barrel, domestic diesel costs for local operators rose substantially, squeezing their operational finances. Without government subsidies, despite rolling out multiple cost-control measures to mitigate financial fallout, the operators said their business has inevitably been hit. Other measures are therefore required to maintain financially sustainable operations.
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