LANGKAWI: The Langkawi Tour Bus Association (PBPL) has joined the chorus of groups calling the federal government to consider extending diesel subsidies for operators.
Its chairman Megat Radhi Azizan said tour bus operators on the island are under pressure following the government's decision to implement diesel subsidy rationalization, which increased the pump price from RM2.15 to RM3.35 per liter, effective June 10.
"The diesel price hike of RM1.20 per litre in Peninsular Malaysia has piled pressure on the 25 tour bus operators in this island.
"For example, the previous cost of diesel for each tour bus was between RM150 and RM215 daily, but the price has shot up to between RM235 and RM335 per bus daily now," he said when contacted.
Each tour uses between 70 and 100 litres of diesel daily to provide eight-hour tour services for visitors to Langkawi.
Following the hike in their operation costs, Megat Radhi said the operators are mulling increasing their rental rate to stay afloat.
He added that the operators are also worried over the prospect of a price hike for maintenance and spare parts costs soon.
"Should we increase our fares, the tourism package offered by local tour agencies will also increase since they are inter-related.
"Should it (fare hike) happens, it will adversely impact the island's tourism industry, which is struggling to fully recover from the severe economic impact from Covid-19 pandemic.
On Wednesday, Peninsular Malaysia Tour Bus Operators Association urged the government to conduct thorough examination on the effects of the diesel subsidy rationalisation on tour bus operators.
Its president, Steven Chong Sin Wah was reported as saying that the diesel subsidy rationalisation has burdened tour bus operators, causing them to incur more losses.