As the transportation industry continues its shift towards sustainable mobility, fleet operators are increasingly evaluating the long-term operating costs of different vehicle technologies. While the initial purchase price is an important consideration, the true cost of ownership depends largely on energy consumption, operational efficiency, and annual running costs.
To provide a clearer perspective, Head of Product Development & Technical, Ahmad Izhar Che Om, conducted a comparative analysis of the operating energy costs between diesel and electric buses based on current fuel and electricity rates in Peninsular Malaysia (June 2026).
Understanding the Comparison
The study compares the average energy consumption of diesel and electric buses using commonly accepted operating assumptions.
Energy Consumption
- Diesel Bus: 21 litres per 100 km
- Electric Bus: 120 kWh per 100 km
Energy Rates (June 2026)
- Diesel: RM4.67 per litre
- Industrial Electricity Tariff: RM0.454 per kWh
Using these figures, the analysis estimates the annual energy costs for buses travelling approximately 80,000 km per year, a typical operating distance for commercial fleet vehicles.
Cost Comparison
| Vehicle Type | Energy Cost per km | Annual Energy Cost* |
|---|---|---|
| Diesel Bus | RM0.981 | RM78,456 |
| Electric Bus | RM0.545 | RM43,584 |
*Based on an estimated annual mileage of 80,000 km.
The findings indicate that an electric bus incurs significantly lower energy costs compared to a conventional diesel bus, resulting in an estimated annual saving of RM34,872 per vehicle.
Key Findings
The study found that an electric bus consumes approximately 40% less energy cost than a diesel bus under the same operating conditions. Over the course of a vehicle's operational lifecycle, these savings can contribute substantially to lowering fleet operating expenses.
For fleet operators managing multiple buses, the cumulative savings become even more significant, making electric buses an increasingly attractive option for long-term operations.
Why It Matters
Reducing operating costs is one of the key priorities for fleet operators. Lower energy consumption translates directly into lower running costs while also supporting Malaysia's transition towards cleaner and more sustainable public transportation.
Beyond cost savings, electric buses offer additional advantages, including:
- Lower greenhouse gas emissions
- Reduced dependence on fossil fuels
- Quieter vehicle operation
- Support for Environmental, Social and Governance (ESG) initiatives
- Greater long-term sustainability for public and commercial transport
As Malaysia accelerates its adoption of green mobility solutions, electric buses are becoming a practical investment for organisations seeking both economic and environmental benefits.
Conclusion
The comparative analysis demonstrates that electric buses can deliver substantial long-term operating cost savings while contributing to a more sustainable transportation ecosystem. Although each fleet has different operational requirements, understanding the total cost of ownership is essential when planning future fleet investments.
By evaluating energy consumption and operating costs alongside performance and reliability, organisations can make more informed decisions that support both business efficiency and national sustainability goals.
Study Conducted by
Ahmad Izhar Che Om
Head of Product Development & Technical