Bus operators warn diesel hike could derail tourism sector

2026-03-18 - 01:14

Pertubuhan Gemilang Agensi Pelancongan dan Pengusaha Bas Malaysia urged the government to consider several immediate measures, including targeted diesel subsidies for licensed operators, rebate schemes based on actual fuel usage, and temporary tax incentives. (Bernama pic) PETALING JAYA: The 80 sen per litre increase in diesel prices is placing significant pressure on the tour bus industry, with operators warning that it could threaten business sustainability and undermine the competitiveness of Malaysia’s tourism sector. Abdul Aziz Ismail Gani, president of Pertubuhan Gemilang Agensi Pelancongan dan Pengusaha Bas Malaysia, said the hike was implemented without a dedicated support mechanism for the tourism transport industry. He said fuel was the largest cost component of daily operations, and that the increase in diesel price would have an immediate and substantial impact on businesses, particularly for small and medium-sized operators. “The tour bus industry is the backbone of the national tourism ecosystem, facilitating tourist mobility while supporting hotels, travel agencies, and event organisers,” he told FMT. The government had announced an increase of 80 sen per litre in diesel prices for Peninsular Malaysia, bringing the retail price to RM3.92 per litre for the period of March 12 to 18. The price of subsidised diesel sold to land public transport and logistics vehicles in West Malaysia will be maintained at RM1.88 and RM2.15 a litre, respectively. Aziz urged the government to consider several immediate measures, including targeted diesel subsidies for licensed operators, rebate schemes based on actual fuel usage, and temporary tax incentives. He also proposed a dedicated support fund as well as the start of a dialogue between the government and industry representatives to develop long-term solutions. “Operators remain committed to supporting the growth of the tourism sector, but without adequate support, rising cost pressures could have serious implications for the industry’s survival and the wider tourism value chain,” he said. He added that without the appropriate policy support, operators would struggle to maintain competitive pricing. “If this situation persists, operators will have little choice but to adjust bus rental rates to absorb rising operating costs. “This could lead to higher tour package prices and potentially affect Malaysia’s competitiveness as a regional tourism destination,” he said.