KOTA KINABALU: The 500 bus operators under the Sabah Express Bus Operator Council are disgruntled with the recent reduction of fuel subsidy which they claim has adversely impacted their operating cost and cost of living.
“They already feel burdened by the GST (Goods and Services Tax) which also has an indirect impact on them and now this,” the council’s chairman, Donald Hanapi, told The Borneo Post yesterday.
“The comments I have been hearing so far have all been negative,” he said.
Among the complaints received from members of the council, 21 are from large companies while the remaining are from small and medium operators who said that Sabah didn’t have good road condition such as those in Peninsular Malaysia.
“Our landscape is also distinct. We have mountains separating the East and West Coast and these aspects increase the operators’ fuel consumption and operating costs. Due to our rough landscape, the vehicles’ parts wear out faster, hence needing regular servicing and change of parts. These parts are not exempted from GST so we are affected greatly by the government’s move to implement the GST,” he said.
Presently, a bus operator spends about RM15,000 a month to ensure their vehicles remain in tip-top condition, but once the GST is implemented, Donald said that the expenditure from servicing one vehicle would be twice the present amount.
“Because of these reasons, we are finding it very difficult to accept the GST and the reduction in fuel subsidy,” he said.
He reminded the government that most of the bus operators were running their business on a small scale and the high operation cost would be highly detrimental to these operators.
He said that the government had also called on the bus operators not to increase their fare despite the looming cost of operation.
“This is unfair to my members. They are lamenting that since the government is imposing so much, the government should get a body such as MARA to establish free public transport services for the people.” While the feedback has been negative, Donald added that there was one benefit/advantage of the fuel subsidy reduction.
“Prior to this, our members always complained of diesel shortage. It was just so difficult to get fuel supply. Since the subsidy reduction, we haven’t been faced with any shortage. We can go to any (fuel) station even during the night or wee hours in the morning and there is ample diesel supply. I guess smugglers are now thinking twice before buying diesel from our fuel stations now as it is no longer worth it.”