School bus industry: Rising fuel prices increase operating costs to 20%, hoping for government subsidies

SighingCashier · 2026-04-08T06:37:42+00:00

The Middle East situation has led to a rise in international oil prices. Feng Yu Travel Bus Services Limited, which operates school bus services, spokesperson Ou Qianting said that her company provides transportation for about 400 students from six schools in Sha Tin District, charging between 800 and 900 yuan per month. The proportion of oil costs has increased from 10% to 20% of operating expenses, causing industry anxiety and uncertainty about how to respond.Ou Qianting pointed out that there has always been a demand for drivers to turn off the engine when parked to save fuel, but the reduction in parking spaces within the district has led to higher parking fees, preventing cost savings.She also mentioned that because the company has contracts with the schools, they cannot adjust the fees immediately. Usually, they submit a written report to the schools in March or April to request a price increase for the new school year. In the past, schools and parents accepted a price increase of about 5% to 8%. However, if the bus fare increases too much, students might "drop out," which would be detrimental to the company.

SighingCashier

2026-04-08 06:37:42

The situation in the Middle East has driven international oil prices higher. Yeung Ching-ting, the person in charge of Fong Yu Tourism Coach Services Limited, which operates school bus services, said that her company provides pickup and drop-off services for about 400 students from six schools in the Sha Tin District. Her company charges 800 to 900 yuan per month, but the share of fuel costs in operating expenses has risen from 10% to 20% compared with before, making the industry feel anxious and unsure how to respond.

Yeung Ching-ting said that her drivers have always been required to park and turn off the ignition to save fuel, but the number of parking spaces available in the area has decreased, leading to higher parking-lot fees, meaning costs cannot be reduced.

She also said that because the company has contracts with the schools, it is not allowed to adjust fees immediately. Generally, in March or April, it can submit a written report to the schools to apply for an increase in the new school year’s price list. In the past, the increase range of about 5% to 8% had been accepted by both schools and parents. However, if school bus fares are raised too much, it may result in “students withdrawing from the service,” which would be a loss for the company. She hopes the government can provide a subsidy for the surcharge based on the actual impact, and once oil prices return to normal, the subsidy can be paused, describing it as “the whole industry is all very much looking forward to it.”

Legislative Council member for the education sector Teng Fei said in the same program that the school bus industry generally signs new contracts with schools or parent-teacher associations before the summer vacation. This period can be seen as a buffer to observe changes in oil prices. He pointed out that oil prices may push up inflation and that parents’ overall spending will increase as a result. However, for students in lower grades, taking the school bus is a rigid need—no matter how much school bus fares rise, parents have to accept it—so he hopes the government will consider providing assistance.

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