Middle East Conflict Drives Up Oil Prices, Malaysia Tourism Industry Faces Increased Cost Pressure
Escalating fuel prices due to the Middle East conflict are causing severe cost pressure for Malaysia's tourism industry. Tourist bus operators, excluded from diesel subsidies, are particularly affected, with some raising fares by up to 80%.
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- 📰 Published: May 5, 2026 at 16:25
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Central News
(Central News Agency reporter Huang Ziqiang Kuala Lumpur 5th exclusive report) The ongoing Middle East conflict continues to push up fuel prices, putting pressure on Malaysia's tourism industry. Operators point out that the Malaysian diesel subsidy does not include the tourism industry, and tourist bus operators, who rely on diesel, are directly affected. Their costs are difficult to control, which may trigger a chain reaction in the tourism industry.
Malaysia lowered fuel subsidies in April this year, reducing the monthly quota for RON95 unleaded gasoline per person from 300 liters to 200 liters, with the price remaining at RM1.99 per liter (approximately NT$15.87). For diesel, Sabah and Sarawak in East Malaysia maintain a subsidized price of RM2.15 per liter, with a cap of 50 to 150 liters per refueling.
There are approximately 1.8 million diesel vehicles in Malaysia, which is not a high proportion of the total national vehicle count. The government currently provides diesel subsidy cards to the transportation industry at RM2.15 per liter; those without cards receive a monthly subsidy of RM400 and purchase fuel at market price. The retail price of diesel in West Malaysia on the 3rd was RM5.12 per liter.
The Star reported that multiple tourism and bus associations pointed out that the Middle East conflict has driven up diesel prices, making it difficult for the tourism industry to bear. Tourist bus companies have adjusted their fare standards, with fare increases reaching up to 80%.
Tourism operator Steve Eng stated that the most direct impact of rising fuel prices on operators is transportation costs. Many tour packages require quotes in advance, and once provided to overseas partners, it is often too late to reflect changes in oil prices. Operators find it difficult to pass on costs immediately and can only absorb them themselves, significantly increasing operational pressure.
He cited the example of tourist buses using diesel, noting that the government provides diesel subsidies to some industries such as agriculture and transportation, but the tourism industry has not been included. Operators must bear the full cost of diesel. With continuous fluctuations in oil prices, tourist bus operating costs have risen sharply, forming a long-term burden on the overall tourism market.
In terms of operational strategy, some tourist buses no longer idle when stopping at attractions but instead turn off their engines to reduce fuel consumption, showing that operators are forced to adjust their service models in response to market changes under cost pressure.
Cheng Wai Hoong, Vice President of the Kuala Lumpur Tourist Guides Association, stated in an interview that rising fuel prices have had a clear impact on tourist buses and small shuttle buses. Diesel costs have surged, and fuel expenditure already accounts for a significant proportion of operators' operating costs.
He pointed out that many operators did not have time to adjust their quotes between March and April, as most tour package prices were set months in advance. Operators had to absorb the costs themselves, even incurring losses. Currently, tourist bus fares have generally increased by about 30% to 40%, and the rising prices are also affecting tourists' willingness to travel, creating a wait-and-see atmosphere in the market.
In addition, Malaysian media reported that tourism-related associations suggested that 40-45 seater tourist buses should receive a monthly subsidy of 3000 liters of diesel, and small buses should receive 2500 liters, to alleviate operators' fuel cost pressure. (Editor: Zhou Yongjie) 1150505
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(Central News Agency reporter Huang Ziqiang Kuala Lumpur 5th exclusive report) The ongoing Middle East conflict continues to push up fuel prices, putting pressure on Malaysia's tourism industry. Operators point out that the Malaysian diesel subsidy does not include the tourism industry, and tourist bus operators, who rely on diesel, are directly affected. Their costs are difficult to control, which may trigger a chain reaction in the tourism industry.
Malaysia lowered fuel subsidies in April this year, reducing the monthly quota for RON95 unleaded gasoline per person from 300 liters to 200 liters, with the price remaining at RM1.99 per liter (approximately NT$15.87). For diesel, Sabah and Sarawak in East Malaysia maintain a subsidized price of RM2.15 per liter, with a cap of 50 to 150 liters per refueling.
There are approximately 1.8 million diesel vehicles in Malaysia, which is not a high proportion of the total national vehicle count. The government currently provides diesel subsidy cards to the transportation industry at RM2.15 per liter; those without cards receive a monthly subsidy of RM400 and purchase fuel at market price. The retail price of diesel in West Malaysia on the 3rd was RM5.12 per liter.
The Star reported that multiple tourism and bus associations pointed out that the Middle East conflict has driven up diesel prices, making it difficult for the tourism industry to bear. Tourist bus companies have adjusted their fare standards, with fare increases reaching up to 80%.
Tourism operator Steve Eng stated that the most direct impact of rising fuel prices on operators is transportation costs. Many tour packages require quotes in advance, and once provided to overseas partners, it is often too late to reflect changes in oil prices. Operators find it difficult to pass on costs immediately and can only absorb them themselves, significantly increasing operational pressure.
He cited the example of tourist buses using diesel, noting that the government provides diesel subsidies to some industries such as agriculture and transportation, but the tourism industry has not been included. Operators must bear the full cost of diesel. With continuous fluctuations in oil prices, tourist bus operating costs have risen sharply, forming a long-term burden on the overall tourism market.
In terms of operational strategy, some tourist buses no longer idle when stopping at attractions but instead turn off their engines to reduce fuel consumption, showing that operators are forced to adjust their service models in response to market changes under cost pressure.
Cheng Wai Hoong, Vice President of the Kuala Lumpur Tourist Guides Association, stated in an interview that rising fuel prices have had a clear impact on tourist buses and small shuttle buses. Diesel costs have surged, and fuel expenditure already accounts for a significant proportion of operators' operating costs.
He pointed out that many operators did not have time to adjust their quotes between March and April, as most tour package prices were set months in advance. Operators had to absorb the costs themselves, even incurring losses. Currently, tourist bus fares have generally increased by about 30% to 40%, and the rising prices are also affecting tourists' willingness to travel, creating a wait-and-see atmosphere in the market.
In addition, Malaysian media reported that tourism-related associations suggested that 40-45 seater tourist buses should receive a monthly subsidy of 3000 liters of diesel, and small buses should receive 2500 liters, to alleviate operators' fuel cost pressure. (Editor: Zhou Yongjie) 1150505
Choose to stand with facts, every sponsorship from you is the power to protect press freedom
Download the Central News Agency's "First-hand News" APP to stay updated with the latest news
The text, images, and videos on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.