SHAH ALAM: A sharp rise of between 25% and 28% in transportation charges is looming for factory bus services as operators grapple with surging diesel costs that have severely strained their finances.
Malaysia Workers’ Bus Operators Association president Jackie Chew said the proposed adjustment, based on current fuel prices, was a necessary step to ensure the continued survival of operators and to avoid disruptions to services relied upon by thousands of workers daily.
“Without timely intervention and policy support from the Government, we have no choice but to implement a temporary adjustment in transportation charges, ranging from 25% to 28% on existing contract amounts,” she said.
She said this during a press conference at the MCA Selangor headquarters here on Tuesday (March 31). Also present was Selangor MCA chairman Datuk Lawrence Low.
Chew stressed that the decision was not taken lightly, adding that operators remain committed to working closely with customers and would review the adjustments once fuel prices stabilise or appropriate government assistance is provided.
She highlighted the steep escalation in diesel prices, noting that the cost of a full 200-litre tank had jumped from RM598 on Feb 25 to RM1,104 on March 26 - an increase of nearly 84.6% within six weeks.
Fuel accounts for roughly 35% of total operating costs for factory bus operators, she said, adding that the surge has significantly eroded margins.
“Unlike other sectors, we are unable to immediately pass on these increased costs, as most of our contracts are fixed and long-term in nature,” she said, adding that operators are currently absorbing substantial losses while continuing to meet contractual obligations.
In light of the situation, Chew urged the government to introduce targeted diesel subsidies for factory bus operators, proposing a monthly allocation of 2,000 litres at RM2.15 per litre, similar to the support provided under the Subsidised Diesel Control System (SKDS).
She also called for immediate financial relief measures and a more gradual adjustment of diesel prices to allow businesses time to adapt.
Chew added that the association had formally applied for inclusion in the SKDS scheme since June 2024, submitting requests to several ministries, including the Finance Ministry, the Domestic Trade and Cost of Living Ministry, the Transport Ministry and the Prime Minister’s Office, but has yet to receive an official response.
