Targeted diesel subsidy: tour buses excluded in subsidy rationalisation, services to cost 15-30% more

Targeted diesel subsidy: tour buses excluded in subsidy rationalisation, services to cost 15-30% more

Travelling by bus is set to become more expensive following the exclusion of tour bus services from the targeted diesel subsidy programme that took effect from this week on June 10, reported The Star, while express buses are eligible for the subsidised fuel at a limited quota.

Operations costs for tour bus services would increase by 30%, and the rationalisation disrupted services provided by around 150 members of the Peninsular Tour Bus Operators Association, according to its president Steven Chong.

“On top of the floating diesel rate, we need to pay all sorts of expenses like bus maintenance, bills, salaries, spare parts, and now we have to pay a service tax of 8%. Operators can’t afford to absorb the prices,” Chong said.

Tour operators are afraid of losing customers as their tour packages were quoted based on the subsidised diesel fuel rate of RM2.15 per litre, he said. “With this new rate, it will surely be more expensive, and we are afraid that the agents will not take up our offers,” Chong added.

A memorandum on the matter of fuel pricing was also submitted to the minister of tourism, arts and culture yesterday, and the memorandum stated that the association received “thousands of phone calls” from tour bus operators following the new diesel rate of RM3.35 per litre, which is what operators of tour bus and express bus services will have to pay, adding that the extra costs had to be absorbed and the original price quotations could not be retracted.

Targeted diesel subsidy: tour buses excluded in subsidy rationalisation, services to cost 15-30% more

Table of vehicles eligible for Subsidised Diesel Control System 2.0 (SKDS 2.0)

Meanwhile for express buses, there is a monthly volume quota limit for express buses to refuel at the subsidised rate, but operators will have to purchase diesel at the higher, floated prices. “The quota for express buses was set at 2,880 litres per month, which would only be enough for about 15 days,” said Pan Malaysian Bus Operators Association president Datuk Mohamad Ashfar Ali.

Malaysian Tourism Federation president Datuk Tan Kok Liang expects a 27% hike in the cost of tourism services in Peninsular Malaysia, however saying that tour operators would honour rates provided for previously signed commitments. “We need to honour the commitments made, but it will see us losing money,” he said, urging the government to have a 12-month grace period for the tourism industry to adjust their rates.

Malaysian Association of Tour and Travel Agents president Nigel Wong also appealed for diesel-powered vehicles in the tourism sector to be included in the list of vehicles exempted in the subsidised diesel control system (SKDS) scheme. “Some breathing space will definitely help,” Wong said, adding that a meeting with the ministry of domestic trade and cost of living (KPDN) has been requested.

The SKDS 2.0 scheme began in March this year with five petroleum companies for nine vehicle types, and the list of vehicles eligible for subsidised diesel under this scheme was expanded to a total of 33 vehicle types upon the issuance of 90,000 fleet cards to eligible transport companies last month.

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Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.



  • RM1.50/L petrol mana? on Jun 12, 2024 at 11:36 am

    As above.
    PH Gomen continue to troll millions of Msians

    Like or Dislike: Thumb up 35 Thumb down 8
    • So tiresome to see the same idiotic comment in every govt-related post.

      Like or Dislike: Thumb up 4 Thumb down 18
      • RM1.50/L petrol mana? on Jun 13, 2024 at 9:09 am

        As above. But we all know soon PH will remove RON95 subsidy too instead of giving cheap petrol as they had promised.
        PH Gomen continue to troll millions of Msians

        Like or Dislike: Thumb up 11 Thumb down 2
        • Dah Menang Semua on Jun 14, 2024 at 2:43 pm

          “minyak turun” since zaman-PR
          Ask PAS why promised that but
          pilot Targeted Fuel in 2022 ?

          Like or Dislike: Thumb up 0 Thumb down 0
      • Sick & Tired on Jun 13, 2024 at 9:15 am

        Rakyat is also tiresome of PH Gomen mismanagement and causing unnecessary hardship to all citizen. Please step down immediately. You are FINISHED!

        Like or Dislike: Thumb up 13 Thumb down 1
      • Angry Voters on Jun 13, 2024 at 9:56 am

        There is no such thing as subsidy, according to his mentri formula it is all paid for with higher global oil prices. They must give what they promised!

        Pakatan Rakyat Leader = Pakatan Harapan Leader
        Promises of Pakatan Rakyat for RM1.50/L petrol = Promises of Pakatan Harapan

        Stop defending and give us cheap fuel that we voted for!

        Like or Dislike: Thumb up 15 Thumb down 2
  • tan32 on Jun 12, 2024 at 12:32 pm

    Tour AKA holiday is not necessity, can pay full price

    Like or Dislike: Thumb up 6 Thumb down 7
  • simon on Jun 12, 2024 at 12:48 pm

    Your first sentence is incorrect.

    Express bus is in the list of those qualified for subsidy.

    ONLY tour bus is not qualified.

    Like or Dislike: Thumb up 10 Thumb down 0
    • YB Albert on Jun 12, 2024 at 2:15 pm

      What is the difference between tour and express bus?
      Tour bus carries passengers,local and foreign tourists.
      Express bus carries mainly locals,but can include DIY backpackers tourists as well.
      So,why a lori mayat or lori sampah can have subsidies,while a tourist bas bringing tourists to spend at Cameron highlands ,benefitting the various hotels and foodcourts,have to “swallow” higher diesel expenses?
      It is simply mind boggling.
      I am for removal of subsidies,but those transport businesses that benefit tourism hotels,restaurants,foodcourts should be given a lifeline.

      Like or Dislike: Thumb up 5 Thumb down 2
      • Pro-Palestine on Jun 13, 2024 at 9:09 am

        Relax YB Albert. Its only mind boggling if you think all humans are smart as you. Just understand that most people are actually really stupid and you can understand why our minister comes out with stupid minimally thought through policies. They said more head is better than one. But in our parliament its the opposite

        Like or Dislike: Thumb up 1 Thumb down 1
  • hazri on Jun 12, 2024 at 1:04 pm

    bas persiaran bawa laju lane kanan macam jalan tu bapak dia punya.

    Like or Dislike: Thumb up 4 Thumb down 1
  • Ben Yap on Jun 12, 2024 at 1:11 pm

    i don’t believe this tour bus operators when they say that they will be losing money. show your accounts first before comment. all companies will put a profit margin when they give their quotation. now it is just a matter of earning less only.

    Like or Dislike: Thumb up 9 Thumb down 5
    • Robinhood on Jun 13, 2024 at 9:00 am

      Good, now your boss can cut your salary or you provide cheaper prices to your customers. After all, “IT IS A MATTER OF EARNING LESS ONLY” mah… Also don’t forget to tell all the ministers to reduce the salary and civil servants don’t take so much increment of 35%. We all can see how foolish is the implementation and now the whole country is suffering due to price hike!!!

      Like or Dislike: Thumb up 5 Thumb down 2
  • aljubok menang rakyat dikencingkan on Jun 12, 2024 at 3:22 pm

    All buses should be included in the subsidy. If not, people will avoid using public transport as ticket costs will be increased

    Like or Dislike: Thumb up 2 Thumb down 1
  • Malaysia menteri semua OKU on Jun 12, 2024 at 4:31 pm

    RON 95 next. trust me. Bila kita hanya ada OKU yang mentadbir negara, ini lah akibatnya. Bukan semua boleh dapat menteri pandai seperti Singapura ataupun China di mana menteri mereka pandai buat duit untuk rakyat mereka dan bukan buat duir DARI rakyat mereka. Inilah perbezaan diantara pandai dan bodoh. Orang pandai mmg sgt kurang di dunia oleh itu orang kena pandai undi. Undi guna otak dan bukan emosi. Orang cina di China lagi pandai, terus x payah undi. Biar sistem merit yang pilih menteri mereka. Siapa yang ada paling banyak markah akan dapa jawatan yang paling tinggi. Kalau nak orang undi, hancur negara sebab kebanyakkan orang bukannya pandai. Satu dunia ni ada satu Einstein, satu Elon musk, satu Newton je. Org bijak mmg teramat sedikit.

    Like or Dislike: Thumb up 8 Thumb down 1
    • RM1.50/L petrol mana? on Jun 13, 2024 at 9:10 am

      As above.
      Betul bro tapi ramai org Mesia ingat mrk pandai sbb pilih PH. Mana la tau nasi dah jadi bubur dah jadi taik dan rakyat semua kena makan taik ni.

      Like or Dislike: Thumb up 12 Thumb down 0

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