KUALA LUMPUR – Some service providers, including a towing service and a tour company, are increasing prices following the withdrawal of diesel subsidies.
Despite the government’s mechanism to maintain targeted diesel subsidies for land transport and logistics while the fuel’s price is raised to RM3.35 per litre, those left out of the list of vehicle types eligible to continue receiving subsidised diesel have begun posting notices on their social media platforms to inform customers of their price hikes.
Hong Guan Towing Service, based in Johor, announced that all its towing charges will be increased “in accordance with our operating costs”.
This is because “no subsidy is allocated to the tow truck (operators),” company manager Yvonne Ng said in a notice posted on Facebook.
The notice also stated that its price increase was “in line” with the rise in diesel price from RM2.15 per litre to RM3.35 per litre, an increase of 55.95%, effective yesterday.
Tour operator Maliaray Holidays Sdn Bhd, meanwhile, also cited the 55.95% increase in diesel price as the reason it was raising the prices of all its tour packages and rental bus fees.
The Domestic Trade and Cost of Living Ministry has said that a total of 33 types of public transport and goods vehicles will continue to enjoy subsidised diesel through the use of fleet cards under the Subsidised Diesel Regulation System Pilot Project (SKDS).
However, travel and tour agents have previously said they are not included as recipients of subsidised diesel, which is also provided to school bus operators and fishermen.
Last month, the Malaysian Association of Tour and Travel Agents urged Putrajaya to extend the diesel subsidy to all types of tourism vehicles in view of the subsidy withdrawal planned for June.
According to the government’s list of vehicle types eligible for fleet cards under SKDS, the 10 types of public transport vehicles include school, express, mini and feeder buses; “bas henti-henti;” rental cars; taxis; hearses; ambulances; and fire trucks.
Under the list of nine goods transport vehicles eligible for SKDS are lorries used for moving cargo, bottled drinks, refrigerated goods and water as well as luton/box lorries, prime movers, flour tank lorries, panel vans and window vans.
Under the list of 14 other types of transport or logistics vehicles are curtainsiders; agriculture produce lorries; animal transport lorries; combination lorries; open platform lorries; buses, vans and lorries used for food catering; tankers used for transporting drinks; semi-panel vans; buses, vans and lorries used in moving services; and garbage trucks.
Prior to the diesel price float yesterday, the fuel was sold at three different prices: RM1.65 per litre for fishermen, RM1.88 for land public transport and RM2.15 for commercial and private vehicles.
The subsidies remain for fishermen through the Fisheries Department, and for land public transport and commercial operators via the fleet card system.
Among members of the public, economists have said the subsidy withdrawal is expected to impact private diesel vehicle users more than others.
The Finance Ministry is providing RM200 in cash assistance to private diesel vehicle owners, as well as to individual small farmers and smallholders in the agri-commodity sector under the Budi Madani scheme.
The withdrawal of diesel subsidies is not applicable to Sabah and Sarawak. – June 11, 2024
