Wan Agyl Wan Hassan, senior advisor at transport think tank MY Mobility Vision, said tourism transport operators should shift their focus towards long-term solutions to reduce dependence on diesel and improve resilience against price volatility.
“The reality is that margins in transport are already very thin. When fuel prices increase, operators simply do not have much room to absorb it,” he said. “More importantly, this situation is revealing something deeper. It shows how dependent the overall transport system still is on fuel.
“Supporting a transition to more efficient engines or newer technologies can reduce exposure to fuel price volatility over time.”
He said fleet modernisation was a key area to explore, noting that many smaller operators still rely on older, fuel-inefficient vehicles.
Diesel prices in West Malaysia have almost doubled, from RM3.12 to RM6.02 over the past four weeks as a result of the Middle East conflict, prompting tourism transport operators to urge the government to introduce subsidies of up to 3,500 litres a month for each vehicle operated by tour transport companies.
Wan Agyl said that easing the cost of essential maintenance items can help operators avoid cutting corners in ways that may affect safety and reliability, adding that more predictable and transparent diesel cost structures can help operators with planning and stability.
Universiti Malaya senior lecturer Goh Lim Thye said the government’s incentives should increasingly support a transition towards electric vehicles, hybrid technologies, and renewable energy.
“Strengthening incentives in these areas helps reduce long-term dependence on fuel subsidies and mitigates exposure to volatile global energy prices,” he said.
Goh said that while there is a tendency in public discourse to focus on how much more support can be provided, the more fundamental question is whether Putrajaya can afford to provide it.
“If there is no fiscal space, then every additional subsidy must be financed either through borrowing or future taxation,” he noted.
The price of diesel in West Malaysia for April 2-8 is fixed at RM6.02 per litre, up from RM5.52 while diesel in Sabah, Sarawak and Labuan remains at RM2.15 per litre.