Hong Kong bus firm scraps service cuts after warning from authorities
ABC Touring Car Company says rising oil prices mean “every service is like pouring money into the sea”
A Hong Kong bus operator serving commuters in Tuen Mun has scrapped plans to reduce services amid soaring oil prices after transport authorities warned that it needed to apply for any changes at least 14 days in advance.
ABC Touring Car Company, which runs non-franchised bus services linking Tuen Mun and urban areas, announced on Sunday it would reduce its operations with immediate effect as a first step to cut costs.
But the company, which had also warned of ceasing operations, changed course after the Transport Department’s notice requirement.
Fuel bills had more than doubled since late February, pushing the business to the brink, the firm said.
“It is really hard to survive these days,” the company said in a social media post on Sunday. “Our heart sinks when we look at the oil price list. For every passenger we pick up and drop off, the cost has gone up by more than HK$5 [60 US cents] in a month.”
It had applied for a fare increase but said government approval would take time.
“Oil prices are going up every day. We are making a loss for each bus service we run. Every service is like pouring money into the sea,” the firm said.
The firm said it would reduce some services with immediate effect to cut costs and would resume normal operations only once its application for a fare adjustment was approved or oil prices dropped.
As a last resort, the company said it might have to shut down all services or impose a special fuel surcharge.
In reply to the post, some Facebook users said a HK$1 fuel surcharge per trip should be acceptable, while others suggested the company switch to using electric buses.
But on Monday evening, the company said in a Facebook post it would put the service cuts on hold.
“Our plan has not been approved by the Transport Department. All services will remain normal,” the company said, while adding that as “oil prices continue to rise, we continue to lose money”.
The U-turn came shortly after the department expressed concern and said it had contacted ABC Touring Car Company.
“According to the licence requirements, should the operator plan to adjust its services, it should obtain the general consent of residents before submitting an application to the Transport Department at least 14 days in advance,” a department spokesman said.
“The department is aware that the operator concerned is discussing with residents and will submit an application to the department after a consensus is reached.”
He said the department would monitor traffic and public transport services in the area and would ask other operators to step up services according to demand.
He added that the government was highly concerned about rising international oil prices and had been in close contact with all public transport operators to understand the impact on their operations.
ABC Touring Car Company was set up in 1988 and mainly operates residential bus services in the Tuen Mun area, with about 40 daily trips between Tuen Mun and various locations in the city, according to its website.
It serves commuters of Siu Lun Court, Tai Hing Gardens and the Chi Lok Fa Yuen housing estate in Tuen Mun. Tai Hing Gardens is near an MTR station, but the others are not.
The company also provides cross-border, school, corporate and tourist services.
A spokesman for ABC Touring Car was unavailable for comment.
Dick Yip Shung-kin, chairman of the Tuen Mun District Tourists and Passengers Omnibus Operators Association, said rising oil prices could be the last straw for the struggling estate bus services sector.
“The government policy is discriminatory. Most estate bus routes are not covered by the HK$2 scheme. So, many passengers opt for the MTR or franchised buses,” Yip said, referring to the government public transport fare concession scheme for the elderly and people with disabilities.
“Increasing fares or charging fuel surcharges could backfire. If the fares are pushed too high, it will instead drive away passengers.”
He urged the government to offer subsidies to help the sector survive the oil crisis, adding that in the long term all estate bus routes should be covered by the HK$2 scheme.
In 2025, there were about 900 non-franchised public buses running estate routes.
According to the department, such services supplement the mass carriers during rush hours and also serve areas not sufficiently covered by regular public transport services.
1 in 3 Hong Kong commercial laundry operators at risk of closure as oil prices soar
Industry representatives say price of industrial diesel has increased by more than 190 per cent in just over one month
As many as a third of laundry companies serving corporate clients in Hong Kong could shut down due to soaring fuel costs, an industry leader has warned, with some operators forced to reject new orders and freeze hiring.
Industry representatives said on Monday the price of industrial diesel, commonly known as “red diesel”, surged from about HK$6 (80 US cents) per litre in late February to as high as HK$17.50 in early April, an increase of more than 190 per cent.
The sharp rise has sharply raised operating costs for laundry businesses, which rely heavily on diesel-powered boilers to generate steam for high-temperature washing and sterilisation, particularly for hospital linens and hotel laundry.
Lee Lam, chairman of Yue Yi Laundry (Hong Kong) and the Laundry Association of Hong Kong, said the company used to spend more than HK$1 million on industrial diesel, but the cost rose to more than HK$5 million last month. He also expected the company to log a HK$3 million loss in April.
He said the company handled more than 100 tonnes of linen and used 12,000 litres of industrial diesel per day, with the city’s main luxury hotel chains, catering chains and private hospitals among its clients.
“Those operators lacking cash might be forced to close as they need to pay the diesel bills. I think there could be 20 to 30 per cent of operators closing,” Lee said.
