Taxi and tour bus operators expect big losses after M'sian fuel hike
By Channel NewsAsia | Posted: 06 June 2008 2128 hrs

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SINGAPORE: The prices of tour bus tickets to and from Malaysia are likely to increase. Bus transport operators are already expecting to make big losses, following the fuel hike in Malaysia.

At least 60 coaches carry passengers from Singapore to Malaysia every day. And given the distance they cover, their fuel consumption is naturally high. So the increase in fuel prices in Malaysia will have a significant impact on operating costs.

Already, Grassland Express and Tours has increased fares from 10 per cent to 25 per cent. But the company said that any impact would only be felt, once the June school holidays come to an end.

Tan Boon Huat, Managing Director, Grassland Express Tours, said: "They (our customers) have already paid for their tickets. During this time, we don't have any fair solution to charge them extra."

Also affected by the fuel hike are operators of taxi services which ply between Singapore and Johor.

But not all companies plan to raise their fares just yet.

Tan Thiam Hock, Vice Chairman, Singapore-Johor Taxi Operators, said: "At present, we don't consider increasing our fees because recently, we just increased it by S$2."

Cabbies are already expecting a drop in profits.

Following the sharp increase in fuel prices, the Malaysian government is expected to outline measures to ease the burden on consumers next week. - CNA/vm