---
title: "The parent company of KMB stated that the sharp rise in oil prices has a severe impact, and government subsidies only offset part of the costs, with \"diesel prices rising nearly 200% within two months.\""
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/282973164.md"
description: "Kowloon Motor Bus Company (KMB) parent company TRANSPORT INT'L (062) stated that the government's subsidy for diesel prices can only offset part of the costs, and the impact of the sharp rise in fuel prices remains severe. Diesel prices have increased by nearly 200% since the end of February, reaching USD 250 per barrel. The company will formulate operational and financial strategies based on future fuel price fluctuations and will continue to monitor market developments. The government's short-term support measures include subsidies and reductions in tunnel fees, but they are still insufficient to fully offset costs"
datetime: "2026-04-16T09:32:01.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/282973164.md)
  - [en](https://longbridge.com/en/news/282973164.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/282973164.md)
---

# The parent company of KMB stated that the sharp rise in oil prices has a severe impact, and government subsidies only offset part of the costs, with "diesel prices rising nearly 200% within two months."

Kwoon Tong's parent company TRANSPORT INT'L (062) issued a statement indicating that the government's subsidies on diesel prices and reductions in tunnel fees can only offset part of the rising fuel costs, and the company still faces severe impacts from the sharp increase in fuel prices.

## Formulating Appropriate Operational Strategies to Respond

TRANSPORT INT'L stated that the extent of its financial impact will depend on future fluctuations in fuel prices. It will continue to monitor market developments and analyze and formulate appropriate operational and financial strategies to address the effects of rising fuel prices.

## Diesel Price Increase Far Exceeds Crude Oil

The company noted that the ongoing crisis in the Middle East has led to a sharp surge in global crude oil prices, with diesel prices rising even more dramatically than crude oil prices, impacting the refined oil supply chain, refinery operations, and global distillate inventories to varying degrees. The company pointed out that since the end of February this year, diesel prices have increased nearly 200% from about $90 per barrel to $250 per barrel, and forward indicators suggest that diesel prices may remain high in the short term.

## Government's Two-Month Short-Term Support

TRANSPORT INT'L stated that the government announced measures to address rising fuel prices on April 9, providing the industry with two months of short-term support, including subsidies on diesel prices and reductions in tunnel fees, as well as the establishment of a "Public Transport Service Special Application Working Group" to expedite the approval of applications submitted by public transport operators to flexibly respond to rising fuel costs. However, TRANSPORT INT'L indicated that these short-term subsidy measures can only offset part of the rising fuel costs, and the company still faces severe impacts from the sharp increase in fuel prices

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