The Chief Executive in Council today approved fare increases for Kowloon Motor Bus (KMB), New Lantao Bus (NLB), Citybus and New World First Bus, but rejected the fare increase application of Long Win Bus.

Meanwhile, the special measure implemented under the Public Transport Fare Subsidy Scheme will be extended for six months to alleviate commuters' fare burden.

The average fare increase of Citybus and New World First Bus will be 12% to be implemented in two phases, with 8.5% to take effect on April 4 and a further 3.2% on January 2, 2022.

KMB's average fare rise is 8.5%. Taking into account the mitigating effect from the company's Franchised Bus Toll Exemption Fund and the fare increases of the cross-harbour routes it jointly operates with Citybus and New World First Bus, the actual fare increase rate of its solely operated routes should be 5.8%, effective on April 4. The average fare increase approved to NLB is 9.8%, also effective on April 4.

The Executive Council vetted the fare increase applications of the franchised bus operators under the Fare Adjustment Arrangement for Franchised Buses and took into account factors such as changes in operating costs and revenue since the last fare adjustment, the need to provide the operators with a reasonable rate of return and public acceptability and affordability.

The Legislative Council Panel on Transport and the Transport Advisory Committee's views were also considered. About 90% of passengers will pay no more than $1.50 extra per trip upon implementation of the new fares.

Noting that the processing of the fare increase applications had been put on hold amid the uncertainties arising from the COVID-19 pandemic, the Government said it has introduced relief measures under the Anti-epidemic Fund to help the franchised bus operators cope with the operating pressure in the prevailing economic environment.

With the gradual cessation of these relief measures by the end of the year, individual franchised bus operators are facing severe financial difficulties because of declining revenue and rising operating costs, the Government added.

Meanwhile, the relaxation of the monthly threshold under the Public Transport Fare Subsidy Scheme from $400 to $200 will be extended till December 31 and the monthly subsidy cap will be raised from $400 to $500.

Moreover, beneficiaries enjoying a concessionary fare of $2 per trip when taking public transport under the Government Public Transport Fare Concession Scheme for the Elderly & Eligible Persons with Disabilities will not be affected by the fare increases.