LANGKAWI: Ferry operators here have cut daily trips by 40% after industrial diesel prices more than doubled, raising fears that the industry could collapse without intervention.
Ferry rides to the archipelago have been reduced from five to three trips a day starting March 25.
Langkawi Ferry Line Ventures Sdn Bhd said the move was necessary after industrial diesel prices surged from RM3.20 to RM7.30 per litre, sharply pushing up operating costs.
Many sectors are not allowed to buy diesel at the pump and must instead order industrial diesel.
Its general manager, Dr Baharin Baharom, said that without stabilisation measures such as schedule control, fare adjustments or policy support, ferry operators risked shutting down in the near term.
“Reducing trips is not a choice but a necessity to ensure we can continue operating,” he said.
He said some had criticised the reduced frequency, viewing it as profit-driven, but this did not reflect the realities faced by operators.
Baharin said ferry fares to Langkawi remain among the lowest in the country at about 88sen per nautical mile, compared with roughly RM2 per nautical mile for routes to islands such as Tioman and Pangkor.
He said fares had long been kept low to support affordable tourism, but rising costs now pose a serious challenge to business sustainability.
Ferry Line Ventures was established in 2005 through the merger of seven ferry companies and is now the largest ferry operator in Langkawi and in Malaysia.
