Hong Kong’s urban taxi operators seek to raise fares by HK$6, pointing to higher costs for insurance and fuel
- Annual insurance premiums have risen from HK$27,000 two years ago to HK$55,000, industry leader says
- Another veteran of trade notes increase in fares that took effect in July was result of application made five years ago
Hong Kong’s urban taxi operators have proposed raising the flag fall charge by HK$6 (77 US cents) just months after authorities bumped the charge up to HK$27, joining a growing list of transport and utility service providers seeking higher fares despite public concerns over inflation.
Industry representatives on Thursday said they hoped the 23 per cent increase in the basic charge could take effect in the first quarter of next year at the earliest, but acknowledged operators had yet to reach a consensus on the proposal.
Part of the reason drivers needed to charge more, one veteran of the trade explained, was rising annual insurance premiums, which had gone from HK$27,000 in 2020 to HK$55,000 this year.
“We talked to the [transport] bureau about the issue, and its officials admitted there was not much it can do to lower the insurance premiums,” said Chow Kwok-keung, chairman of the Hong Kong Taxi and Public Light Bus Association.
Another industry leader argued the economic landscape had changed significantly since operators last applied for a fare increase five years ago. They sought a HK$6 rise, but authorities granted only half that amount this past May, with the change taking effect on July 17.
