The Chief Executive in Council today approved fare increases for Citybus and New World First Bus.

With the mitigating effect from the Franchised Bus Toll Exemption Funds, the average fare increases for Citybus and New World First Bus passengers will be 7% and 5.6%.

Under the new fares, about 90% of Citybus passengers and 97% of New World First Bus passengers will either not be affected or will need to pay no more than $1 extra per trip.

The Executive Council also approved a 7% fare increase for cross-harbour routes jointly operated by Citybus and Kowloon Motor Bus and a 5.6% increase for routes operated by New World First Bus and Kowloon Motor Bus.

For Kowloon Motor Bus, 94% of its passengers will not be affected while 6.1% will have to pay 20 cents extra or more per trip.

The Government said the two bus companies last increased their fares in 2008, adding if the fares remain unchanged, the two bus operators will continue to run a deficit of a much larger magnitude in the coming years.

It said the increased fares are lower than the changes in the Composite Consumer Price Index and the Median Monthly Household Income.