KUALA LUMPUR: Rising diesel prices are expected to affect the transport sector, with a possible increase in school bus fares if cost pressures persisted.
The Federation of Malaysian School Bus Associations did not rule out the possibility, although operators were still benefiting from the government's subsidy scheme.
Its president Amali Munif Rahmat said the real impact would begin to be felt, including higher maintenance costs, spare parts and engine oil, if diesel prices remained high over a certain period.
"When transport costs increase, it will affect the entire chain, including the prices of goods and other services, even if the impact is not immediate.
"If this situation continues for more than two weeks or longer, the possibility of fare revisions cannot be avoided," he said.
Asked about the estimated potential fare increase, Amali said it could not be decided collectively by the association as it was subject to competition laws.
He said the decision to raise fares would depend on individual operators based on their respective operating costs.
"Operators need to ensure their businesses remain viable. If they continue to incur losses, they will not be able to sustain services and may eventually be forced to cease operations.
"The rate of increase will vary between companies as each operator has a different cost structure," he said.
He expressed hope that the government would maintain subsidised diesel prices specifically for the school transport sector to ensure services were not disrupted.
"The issue of supply must also be addressed as a shortage of diesel could disrupt daily operations and have a direct impact on students.
"If the supply is insufficient, it could disrupt the movement of students to school.
"This is not merely a transport issue, but also involves the welfare of families, particularly those in the B40 group," he said. - NST
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