Diesel price hike may affect VM2026 plans, says tourism group

2026-03-16 - 01:44

Mata president Khalid Harun said tour bus operators face high costs for fuel, maintenance, driver salaries, tolls, permits and insurance. (Bernama pic) PETALING JAYA: A tourism group has warned that the rise in diesel prices, driven by ongoing tensions in the Middle East, could push up operating costs for tour bus operators and affect Malaysia’s tourism sector as the country gears up for Visit Malaysia 2026 (VM2026). Khalid Harun, president of the Malaysian Tourism Agency Association (Mata), said diesel is a major cost component for the industry, especially for long-distance travel involving organised tours. “When fuel prices rise sharply, the cost of each trip increases significantly and directly affects the operational stability of transport companies,” he said in a statement today. Khalid warned that rising transportation costs could add pressure to Malaysia’s tourism push for VM2026. “Malaysia is actively promoting VM2026 to attract more international tourists. However, if tourism transportation costs continue to rise, it can place additional strain on the industry and potentially affect the competitiveness of Malaysia’s tourism packages,” he said. Diesel prices increased from RM3.04 to RM3.12 per litre in the first week of March before shooting up to RM3.92 per litre in the following week in Peninsular Malaysia. Khalid said many bookings are confirmed in advance at pre-agreed rates, leaving tour bus operators with little to no flexibility to adjust prices when costs rise suddenly. Many are now forced to absorb the extra expenses, sharply reducing profit margins, and in some cases operating with minimal or no gains at all, he said. Khalid said operators already spend a lot on vehicle maintenance, salaries of drivers, toll charges, permits and insurance. “The diesel price increase, therefore, raises overall operating costs and places further pressure on company cash flows. “If the situation persists, operators may be compelled to increase bus rental rates to offset rising operational costs,” he said. As such, Khalid urged the government to consider support measures to help tourism transportation operators manage rising operating costs and ensure the sustainability of the industry. He said a stable tour bus sector is vital to support the wider tourism ecosystem and ensure the success of VM2026.