Government to Monitor Ferry Operators as Fuel Costs Rise, Transport Chief Says
RTHK · 2 SOURCESabout 3 hours ago5 MIN
Summary
Transport and Logistics Bureau Commissioner Chan Mei-bo (陳美寶) has warned that the government will keep a close eye on outlying island ferry operators as fuel costs continue to pressure their finances. Commercial diesel prices have risen sharply since March, climbing from an average of HK$6.4 per litre to HK$7.6, despite brief relief mid-year . Fuel expenses make up roughly three to four-tenths of total operating costs for longer ferry routes serving islands like Lantau and Lamma. In April, the Transport Department approved fare adjustments for six key routes, slashing the operators' requested increases of 15-30% down to 8% for multi-trip tickets and 12.5% for single-trip tickets . To help operators stay afloat, the government set up an inter-departmental task force in June to fast-track approvals for commercial activities and terminal improvements .
Key Points
- Fuel costs now consume 30-40% of operating expenses on outlying island routes, squeezing ferry operators financially
- Average diesel price rose from HK$6.4 to HK$7.6 per litre between 2024 and August 2026
- Transport Department cut proposed fare hikes from 15-30% to 8% (multi-trip) and 12.5% (single-trip) on six routes in April
- An inter-departmental task force formed in June aims to accelerate commercial approvals and boost non-ticket revenue
- The fare and service adjustments are generally meeting residents' travel needs, per Transport Department observations
Why It Matters
Ferries remain a lifeline for thousands of outlying island residents, and rising fuel prices could eventually force operators to cut services or push through steeper fare hikes without government intervention. The task force's efforts to diversify revenue streams could determine whether these essential transport links remain affordable and sustainable for Hong Kong's peripheral communities.
Ferries remain a lifeline for thousands of outlying island residents, and rising fuel prices could eventually force operators to cut services or push through steeper fare hikes without government intervention. The task force's efforts to diversify revenue streams could determine whether these essential transport links remain affordable and sustainable for Hong Kong's peripheral communities.