Van and tour bus businesses, which are not covered by the targeted diesel subsidy scheme that was introduced in June 2024, are set to be further affected by rising diesel prices, with rental prices for these vehicles reportedly increasing by up to 80% per cent due to rising operating costs, the New Straits Times reports.
Industry players said the increase was not only being driven by higher diesel prices, but also rising maintenance and spare parts costs. According to Malaysian Tourist Guides Council president Jimmy Leong, operators could no longer absorb the additional costs and had to pass them on to customers.
He said that tour buses and vans being excluded from the subsidised diesel control system (SKDS) programme, unlike public transport and goods vehicles, meant an increase was unavoidable. “This directly raises operating costs for industry players,” he said, but added that operators were striving to maintain services despite the challenges.
Meanwhile, Malaysian Association of Tour and Travel Agents (Matta) president Nigel Wong said that the increase could impact the tourism sector. “Higher prices may reduce demand, particularly among budget travellers,” he said, adding that the situation could affect preparations for Visit Malaysia 2026 (VM2026).
The SKDS 2.0 scheme began in March 2024 with five petroleum companies for nine vehicle types, and the list of vehicles eligible for subsidised diesel under this scheme was then expanded to a total of 33 vehicle types. Express, stage, mini and school buses are covered by the diesel subsidy programme.
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