MTR To Raise Fares By 3.14 Percent From June

The MTR has said its fares will go up by 3.14 percent this June, as shown by calculations based on government data released on Tuesday.

But the railway operator said it will offer rebates to Octopus Card users of 3 percent in the second half of this year, saying this will make the increase less noticeable for card users.

According to the fare adjustment mechanism – a price setting formula agreed between the company and the government – increases are fixed by a calculation that involves the Consumer Price Index in December and a transport workers' wage index.

The wage index figures were released on Tuesday.

According to the formula, the railway operator can raise fares by 1.65 percent this year. But by including the 1.49-percent increase accumulated from the previous year, the total increase allowed would be up to 3.14 percent.

Last year, the company was prevented from increasing fares as the result of the formula did not exceed the threshold, which was set at 1.5 percent.

Earlier this month, the MTR Corporation said its profit soared 64 percent last year to more than HK$16.8 billion, thanks to a sharp rise in property revaluation and robust sales of a residential development in Shenzhen.

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