MTR Fare Rise Fixed, But Rebate Shields Commuters

An MTR fare rise for this year has been fixed at 3.3 percent, based on government data released on Thursday.

But the embattled rail operator, which has been facing a series of problems ranging from service breakdowns to construction scandals, said most commuters will not be paying the new rates when they come into effect in June.

The MTR Corporation said passengers travelling with Octopus cards and monthly passes won't feel the pinch because of a rebate the rail operator must offer under its deal with the government.

The fare adjustment mechanism, a formula agreed between the company and the government, uses a calculation that involves the Consumer Price Index in December and a transport workers' wage index.

Based on the transport workers' wage index released by the government on Thursday, the fare rise should have been 3.6 percent, but a capping mechanism bars this.

This is the first time that the cap has been triggered in nine years. But the remaining 0.3 percent increase will be recouped in 2021.

The MTR made a profit of more than HK$11.2 billion last year and according to a profit-sharing agreement, more than HK$200 million will be used in fares rebates.

Passengers using Octopus cards and monthly passes will get this rebate. MTR officials said they would announce changes to individual fares at a later date.