Bus operators seek fare hike

Bus operators seek fare hike

25 April, 2008

The Star

KUALA LUMPUR, MALAYSIA: Long-distance bus operators want an increase of fares because of the hike in diesel prices.

The Pan Malaysian Bus Operators Association has asked the Government to approve an increase in the fares of long-distance express buses.

"The last fare increase of 20% was in May 2005. Since then the Government has announced several increases in diesel price from 88.1sen per litre in 2005 to RM1.58 in 2006. This price hike has negated the fare increase," said association president Datuk Mohamad Ashfar Ali.

"We are pre-empting the government's move to change the subsidy mechanism which may result in omission of certain subsidies," he said.

He added that the fare hike proposal was one of the points in the memorandum the association submitted to the Entrepreneur and Cooperative Development Ministry on April 14.

It is learnt that the association is asking for at least a 50% increase in the fare structure, which also involves stage buses.

The association also called for an increase in diesel subsidy.

At present, bus operators pay RM1.48 per litre of diesel and enjoy the subsidy for only 80 litres per bus.

"This is insufficient. We want the Government to subsidise diesel at RM1 per litre like what fishermen are paying. Subsidising 80 litres is not sufficient as buses use approximately 200 litres a day," he said. .

"Due to fast eroding margins and big monetary losses, certain bus operators have no choice but to cut corners just to survive."

The association also supports the proposal by Konsortium Transnasional Berhad (KTB) to set up an independent authority to govern all land transport (buses, lorries, taxis and tour buses) matters.

"This agency is crucial in order to better regulate the industry as well as enforce regulations pertaining to all land-based transport," he said, adding that the agency should have the power to issue permits and be involved in policy-making decisions.

At present, the Commercial Vehicle Licensing Board issues licences and permits while the Tourism Ministry issues permits for tour buses.

"Different ministries and departments are involved. We need a body to solely govern the matters of land transport," he said.

KTB chairman and managing director Datuk Mohd Nadzmi Mohd Salleh called for the Government to also set up a national registry to enable access into drivers' track records.

Malaysian Institute of Road Safety (Miros) director-general Prof Datuk Dr Radin Umar said the institute welcomes the proposals and hopes to work with KTB to promote road safety and improve the industry.