Daily commuters as well as visitors be prepared for some tough news: Hong Kong’s Kowloon Motor Bus (KMB) Company announced an increase for its fares starting from March 17th, 2013. It was just a matter of time when local Hong Kong Bus Operators would start to increase their fares after the MTR Fare Increase, Star Ferry Fare Increase and Hong Kong’s iconic tram already undertook this unpopular actions last year.
The first Hong Kong Bus Operator to undertake the price increase will be the KMB Company. The KMB Company has been seeking for an 8.5% increase of their fares, but the Executive Council has been approving “only” a 4.9% fare increase. The recent fare increase is due to higher operating costs including staff costs as well as main factors such as fluctuation in fuel prices and cost efficiency of bus routes. KMB’s financial situation shows to be in a weak position and it is very likely that the Company will run a deficit in 2012 after settling its accounts. Having said that, it might be unlikely that KMB’s financial situation will improve immediately and commuters should not speculate to get a break with special promotions similar to the one MTR has been offering their customers since their last fare increase.