Factory bus operators struggling amid rising fuel costs


SHAH ALAM: Factory bus operators are reportedly grappling with a sharp rise in fuel costs following the recent diesel price revisions in Peninsular Malaysia.

According to the Malaysia Workers’ Bus Operators Association president Jackie Chew, their factory bus customers may be staring at potential fare hikes ranging between 25% and 28% as operators grapple with surging diesel costs.

Chew said the proposed adjustment, based on current fuel prices, is 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 during a press conference at the Selangor MCA headquarters here yesterday that was also attended by 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 will review the adjustments once fuel prices stabilise or apprpriate 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.

Chew said fuel accounts for roughly 35% of total operating costs for factory bus operators.

“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 the hikes.

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 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 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.

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