Transport operators on Wednesday urged the government to offer them subsidies to help cope with higher oil prices due to the Middle East conflict.

Angel Au, the director of school bus operator Affluent Coach Services which serves about 400 students, told an RTHK radio programme that fuel now accounts for 20 percent of operating costs, double than before.

Because of this, Au said the company is mulling a fee increase, but she said it would be difficult as they have signed a contract with schools already.

“Usually during March to April, we can submit a written report to schools to apply for an increment in September. The usual acceptable range for schools or parents is five to eight percent. But inflation in recent years has already exceeded the range. We face a lot of difficulties in increasing fees,” she said.

“In other words, even if the parent-teacher association and incorporated management committees understand our situation and allow us to increase fees by eight or even 10 percent, parents would say 'with that much of an increase, perhaps I should use the MTR or other transport.'”

She said that if parents do not support the fare increase, losses would outweigh gains.

The government can offer subsidies to the sector until the cost of fuel returns to its normal range, Au suggested.

Cross-boundary coach operators, for their part, want the government to help ensure that oil companies will reduce their prices as soon as possible.

Freeman Cheung, vice president of the Hong Kong Guangdong Boundary Crossing Bus Association said the rise in fuel hit cross-boundary coaches hard, particularly with diesel up 30 percent.

He said firms would consider slashing bus frequencies starting in May to lower costs.

Cheung said that bus companies would increase fares by up to 10 percent only as their last resort, but he acknowledged that higher prices may lead to commuters opting for the high-speed rail instead.

Firms will probably step up fuel surcharge temporarily, Cheung added.

Speaking on the same show, Hong Kong Fishermen Consortium chairman Cheung Siu-keung said that diesel prices for vessels have at least doubled to HK$2,000 or HK$2,200.

Even though the fishing moratorium starts on May 1, he noted that some fishermen have already suspended fishing activities to lower costs.


Edited by Aaron Tam