KUALA LUMPUR, April 1 — Are you planning a school trip, company trip or even just booking an entire tour van for a family trip from Kuala Lumpur to Penang or Ipoh?

You can expect to pay up to 80 per cent more now, because of the soaring diesel prices in Peninsular Malaysia due to the ongoing Iran war. 

The local tourism industry has been going through a rude shock in transportation costs, as diesel prices jumped 82 per cent from RM3.04 per litre before the war to the current RM5.52.

Tourism transport operators say they can no longer absorb the diesel cost and need to raise bus or van rental prices just to survive, as they do not receive any diesel subsidies from the government.

Here’s the new maximum rental price for tour buses

The Malaysian Inbound Tourism Association (Mita) on Monday announced its new guide on the maximum that can be charged to rent a 44-seat tour bus, which will change depending on the diesel prices in Malaysia.

There are two categories:

• Bus (Domestic Day Tour): You are renting the entire tour bus for only a day trip within Malaysia. (For example, Kuala Lumpur-Port Dickson-Melaka-Kuala Lumpur in just one day.)
• Bus (Series tour): You are renting the entire tour bus for multiple days, usually travelling across different states in Malaysia. (For example, Melaka-Kuala Lumpur-Ipoh over a few days.)

So before the Iran war, you could be charged a maximum RM1,205 for the bus rental for a day trip from Kuala Lumpur as diesel was priced at RM3.04 then.

But now, you can be charged a maximum RM2,200 for the same rental, as diesel is at RM5.52.

The maximum price guide for the Domestic Day Tour bus rentals is only for day trips from Kuala Lumpur, with Mita telling Malay Mail that the price guide “does not apply to longer routes like Johor to Penang, as the distance and mileage are significantly different.”

Zooming in on maximum tour bus rentals for day-trip destinations from KL

Remember the figures above show the maximum you may have to pay to rent an entire tour bus departing from Kuala Lumpur for a day trip, when the diesel price is at RM5.52 per litre.

Now, we zoom in on the maximum price you may be charged depending on where you are going from Kuala Lumpur. This is still based on the RM5.52 diesel price.

“For example, I have a wedding party to attend in Penang. So I want to rent the bus from KL to Penang. So one way RM1,900, two-way RM3,600,” Mita president Mint Leong told Malay Mail.

Leong said renting an entire tour bus from Kuala Lumpur to Ipoh previously may cost around RM1,500, but can now go up to RM1,900 based on the current diesel price of RM5.52 per litre.

New max prices for tour vans (Based on RM5.52 per litre diesel price)

If you want to rent an entire tour van with 16 to 18 seats’ capacity, the same concept applies:

And again we zoom in to the maximum rental prices that can be charged when diesel is at RM5.52, based on where you go from Kuala Lumpur on a one-way journey.

It’s just the maximum price, tour transport operators can still charge you less than this

Why did Mita announce this new price guide?

Leong said it is aimed at price transparency, noting that tour transport operators can still charge below the maximum price in the guide if they wish to.

“So that they know the range. The travel agency knows the range. The consumer will know what is the range. Consumer won’t overpay, and the tour agency also cannot raise according to what they like,” she told Malay Mail.

Apart from those in Malaysia who rent these tour buses or vans directly, tourism agencies abroad would also know the maximum that they should be charged when dealing with Malaysia’s tour agencies.

The maximum rental prices can still go up

Mita’s new guide for the maximum price to rent a tour bus or tour van is mostly based on the current diesel retail price of RM5.52 per litre in Peninsular Malaysia.

As new diesel prices are announced every week on Wednesdays, do watch out for the latest announcement later today, as it will affect how much you have to pay for future tour bus or tour van rentals:

Isn’t this just for overseas tourists? Why should I care as a Malaysian?

Mita vice-president (Transport) Logeswaran K. Sukumar said tour buses had no jobs during the Covid-19 pandemic while waiting for borders to be reopened to international tourists.

When tour buses started operating again in late 2022, most of them shifted to offering their services to local groups, such as schools, local public universities, local private universities, companies, and government bodies.

Noting that many Malaysians would have taken the school bus when they went on school trips in the past, he said the trend now is to take tour buses: “But now your children or grandchildren, although they are in kindergartens, what do they take on “rombongan” (trips)? Tour buses.”

Leong said Malaysia’s tour buses have high fuel costs, as the service provided is “number one” with the engine kept running the entire trip to combat the country’s hot weather.

“We never stop our engine when we are carrying passengers … So once a driver starts the engine, the whole bus will be kept on running,” she said.

For example, even when passengers leave the bus at Rest & Relaxation (R&R) stops at highways for a toilet break or to buy snacks for half an hour, the tour bus engine will not be stopped to enable the air-conditioning to continue running and prevent passengers from returning to a hot vehicle.

“So when the passengers come back, they are okay. That’s why in Malaysia, most of the tourists don’t complain about our bus service,” she said.

Logeswaran added that keeping the engine going would keep passengers’ purchases in good condition, for example preventing chocolates from melting.

Higher transport costs will push your tour package price higher (Think up to 50 per cent more)

Will Malaysians still be affected even if they don’t rent out an entire tour bus or tour van?

Yes, when you buy tour packages.

Leong said travellers will be experiencing an average increase of 30 per cent to 50 per cent in prices for tour packages in Malaysia or even for trips abroad, if the Iran war does not end.

“So when you travel, you have to prepare. Last time, you paid RM1,000 for travel, now you have to pay RM1,300 to RM1,500 to complete your travel,” she said as an example, noting that the higher transport costs would contribute to this.

At the same time, Mita is also urging the government to provide monthly diesel subsidies of 3,000 litres for 40- to 45-seater tour buses and 2,000 litres for tour vans.

What happens to Mita’s maximum price guide for tour buses and tour vans if the government agrees to provide diesel subsidies? 

Leong said: “We have to recalculate everything again”.