Diesel costs have surged by about 80%, pushing monthly operating expenses up by between RM22,800 and RM30,000 for an average resort operator.
PETALING JAYA: Resorts on Pulau Perhentian are burning about 10,000 litres of diesel a month per operator just to keep the lights on, and with no grid connection or fuel subsidy, operators say the rising costs are becoming unsustainable, particularly for smaller family-run businesses.
Perhentian Island Tourism Operators Association chairman Rafizah Munir said diesel costs have surged by about 80%, pushing monthly operating expenses up by between RM22,800 and RM30,000 for an average resort operator.
“A typical mid-sized resort consumes between 2,000 and 2,500 litres a week, with generators running around the clock as the islands have no connection to the national power grid,” she told theSun.
Operators are currently paying commercial rates of RM5.12 per litre for diesel and RM3.87 per litre for petrol, compared with earlier prices of between RM2.84 and RM2.92 for diesel and around RM2.52 for petrol.
“Currently, we are caught in a subsidy vacuum where we have no choice but to procure fuel at full unsubsidised commercial rates.”
She said the association is seeking inclusion in the government’s targeted fuel subsidy mechanisms, including the Sistem Kawalan Diesel Bersubsidi, a regulated system that controls the distribution of subsidised diesel to eligible sectors.
She added that access to the scheme could reduce operating costs by nearly RM30,000 a month for some operators.
Rafizah said the request by the association is for operational survival rather than profit, warning that many smaller family-run resorts are struggling to absorb the increases.
She said logistics costs have further compounded the pressure, with boat operators raising rates by more than 42%.
“Our entire supply chain – everything from the fresh fish we serve to the clean linens in our rooms – relies on third-party boat operators. When the cost of moving a single barrel of supplies jumps from RM7 to RM10, it creates a ripple effect that touches every corner of the island’s economy.”
She said despite the sharp increase in costs, most resorts have raised room rates by only 10% to 15%, absorbing the bulk of the burden themselves.
“A 15% increase in room rates cannot possibly cover an 80% jump in energy costs. At the moment, operators are personally absorbing about three quarters of the blow. We are acting as a shield for our guests, but that shield is getting heavier by the day. We cannot hold it up forever without help.”
A permanent national grid connection is only expected by 2030, leaving operators exposed to escalating fuel costs for years without meaningful relief.
She said if direct fuel subsidies are not feasible, the government could consider zero-interest financing, grants or renewable energy initiatives to reduce long-term dependence on diesel.
“The resorts are not isolated businesses. They are the economic backbone of the islands, supporting boat operators, local traders, workers and hundreds of families.
“Protecting the sustainability of island tourism means protecting livelihoods and preserving one of Malaysia’s most iconic tourism destinations for future generations.”