SINGAPORE: With the price increase in Malaysia’s fuel, cross-border travelers and customers of tour companies can anticipate price increases rapidly.
On Monday ( Jun 10 ), the Malaysian government cut most of its diesel subsidies, which it said was costing the country  , RM4 billion ( US$ 853 million ) annually. The benefits may be redirected to lower-income groups, according to Prime Minister Anwar Ibrahim.
Diesel’s wholesale price in Peninsular Malaysia has been increased by more than 50 % to RM3.35 per gallon from the earlier subsidized amount of RM2.15 for both industrial and private vehicles.
PASSING ON Prices
The fuel rate increase will affect Singapore Cab Booking’s bus services, according to Singapore Cab Booking, which provides transportation between the two nations.
” We have the Singapore- KL overland exchange. With the 50 per cent increase in fuel prices, the cost is almost similar to Singapore’s fuel price”, said CEO Farid Khan, adding that the company also has to pay toll fees.  ,
In his ship, he has 12 45-seat coaches and other smaller trucks that furthermore use gasoline. He also collaborates with a few Indonesian manufacturers, and some of them have already asked to raise prices.  ,
” With this increase in the price of gasoline, when we want to raise our pricing to our clients, that’s a problem. They will produce sounds, no delighted the rate is going up”, said Mr Khan.
Some contracts, particularly for clients travelling in large groups, were signed and pricing fixed months in advance, said Mr Khan, who added that he would create a loss in some cases.  ,
His profit margins will be affected by the cost increase overall by about 20 % to 30 %. He is now negotiating with his contractors about their higher asking costs.  ,
He intends to increase his prices for new items or contracts by at least 20 % over the upcoming month.  , For example, he currently charges S$ 550 ( US$ 406 ) for a one- way coach trip to Legoland in Malaysia. However, he intends to raise this to about S$ 650 as a result of higher fuel prices and the recently implemented car entry permit system.  ,
” Business customers… they plan their vacations and publication way before. Particularly during school vacations, two to three weeks before they actually make their reservations because they are aware that last-minute reservations are going to be extremely expensive,” he said.  ,
” So when this thing happened, voila! It’s like they dropped a revelation. Headache” . ,
Starting on October 1, Singapore vehicles may be required to enter Malaysia with car access permits. A radio frequency identification tag may get installed on vehicles for RM10, according to the news.  ,  ,
EU Holidays said its Malaysia visit plans, which make up about 10 per cent of its company, will probably increase in price.
Ong Han Jie, the director of the tour company, told CNA that the company has not yet decided how much the boost may be. Additionally, the Malaysian users have not yet confirmed the price increases they will receive.  ,
Because we still have confirmed services to be provided at the moment, but those who have already committed to the costs will be delivered as per the costs,” I believe it’s going to occur in soon, but perhaps not quickly,” said Mr. Ong.  ,
According to him, the cost of running the coaches during their journeys has increased by 40 % as a result of the price increase in fuel.  ,
” For us, there is an increase in cost, but because the ringgit has depreciated against the Singapore dollar, in Singapore’s context, personally I did n’t feel that it’s a very big problem” . ,