Tour bus operators warn diesel price surge may force closures

 The price of diesel in West Malaysia has gone up by RM1.60 over the past two weeks as a result of the war in the Middle East.

A tour bus operators’ group said the recent hikes in the price of diesel had made their previous quotations irrelevant. (Bernama pic)

PETALING JAYA:

 Several tour bus operators have warned they may go out of business following a recent surge in diesel prices, which has pushed their operating costs up by as much as 100%.

Ahmad Ruslan Abdul Latiff, chairman of the Northern Zone Tour Bus Operators Association, said around 100 companies under the association had expressed concern over the long-term impact of the price hikes, which could force some operators to cease operations.

He said the group plans to submit a memorandum to Prime Minister Anwar Ibrahim to call for immediate action.

“The rise in diesel prices has made our previous quotations irrelevant. Operating costs have doubled, meaning profits are practically gone. If this situation continues, how can we sustain our businesses?” Ruslan said, reported Kosmo!

“The quotations we provided were based on prices before the increase. We have tried to negotiate with customers, but it has been difficult, and about 50% of bookings have already been cancelled.

“We want the relevant ministers to meet with the prime minister to find a solution. We would like to propose incentives such as advance assistance and targeted subsidies to help ease the burden on operators.”

Meanwhile, Zainal Abidin Mihat, a committee member of the Malaysian Bumiputera Bus Operators Association, said operators were struggling as they did not receive diesel subsidies.

“We have to buy diesel at floating market prices. We have long borne high operating costs, but this latest increase is very steep. If this is not addressed, many companies may not be able to operate within a month,” he said.

Zainal said diesel for a bus, which previously cost around RM700, had doubled to RM1,400 and could rise to RM2,000, while the operators only made RM1,500 a trip.

“How are we supposed to operate? This is particularly concerning with the Visit Malaysia 2026 campaign under way,” Zainal said.

Mahadi Izady Maharazi, secretary of the Malaysian Bumiputera Tour Bus Operators Association, stressed that immediate assistance is crucial to ensure the sector’s sustainability. He estimated that approximately 5,000 bus operators nationwide would be affected by the diesel price increase.

The operators were speaking after a gathering in Alor Setar, Kedah, which saw 31 tour bus operators voicing their concerns.

The price of diesel in West Malaysia has gone up by RM1.60 over the past two weeks as a result of the war in the Middle East.

Last week, the Malaysian Inbound Tourism Association warned that tourism transport operators might be forced to shut down if Putrajaya did not intervene with a diesel subsidy, while the Malaysian Tourism Agency Association said the price hike could affect the Visit Malaysia 2026 campaign. - FMT