100 Tour Bus Companies At Risk Of Closure After Diesel Prices Surge Over 76%

Bus fares doubled, and in some cases even tripled, during the 'balik kampung' season.

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A hundred tour bus companies face the risk of closure following a diesel price hike from RM3.04 to RM5.52 in less than a month in Peninsular Malaysia

According to the New Straits Times, Northern Zone Tour Bus Operators Coalition chairperson Ahmad Ruslan Abdul Latiff said the affected companies across Perak, Kedah, Penang, and Perlis are struggling to sustain operations.

"Operating costs have doubled, and we are seeing a 50% cancellation rate in bookings," he said.

Ahmad Ruslan noted that while operators have tried to explained the situation to customers, they ultimately choose to cancel due to the price increase.

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Bus operators gathered in Alor Setar on 24 March to urge the government to address issues stemming from the diesel price hike.

Image via Kosmo

Here is a breakdown of the diesel price increase over the past four weeks:

Diesel Price Table
Date Price (per litre) Change % Change
5 – 11 March RM3.12 Up 8 sen +2.63%
12 – 18 March RM3.92 Up 80 sen +25.64%
19 – 25 March RM4.72 Up 80 sen +20.41%
26 March – 1 April RM5.52 Up 80 sen +16.95%


Within a month of the Middle East conflict, diesel prices in Peninsular Malaysia have risen by RM2.48, or 76.92%.

For context, vehicles owned by companies, e-hailing drivers, diesel motorcycles, and luxury vehicles under 10 years old are not eligible for the BUDI Diesel programme, which has increased its monthly payout from RM200 to RM300 recently.

Two weeks ago, bus fares doubled , and in some cases even tripled, to between RM80 and RM120 for a one-way trip — up from the usual RM45 — as Malaysians returned to their hometowns for Hari Raya Aidilfitri.

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Image via New Straits Times

Ahmad Ruslan said it would not be surprising for diesel prices to continue surging to RM7

He said the situation would hurt the industry's support for the Visit Malaysia Year campaign, describing tour buses as the backbone of domestic and international tourist movement in the country.

"We will submit a memorandum to the Tourism, Arts and Culture Ministry (MOTAC) and the Prime Minister to seek an immediate solution.

"We are proposing temporary financial assistance and the provision of targeted diesel subsidies for tour bus operators registered under MOTAC," he said.

Meanwhile, Malaysian Bumiputera Tour Bus Operators Association secretary Mahadi Izady Maharazi called for prompt assistance to safeguard the survival of the tourism transport sector, reported NST.

The price of diesel has risen to RM5.52, effective today:
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