Malaysia

Consumers warned of price hikes after diesel subsidy cut

From hardware supplier to tow truck operator, companies expect higher costs.

Updated 2 years ago · Published on 11 Jun 2024 12:31PM

Consumers warned of price hikes after diesel subsidy cut
Several companies have informed their customers of price revisions following the government’s announcement that diesel prices will be floated and retail at RM3.35 per litre starting midnight yesterday nationwide. – The Vibes file pic, June 11, 2024.

SEVERAL companies have informed their customers of price revisions following the government’s announcement that diesel prices will be floated and retail at RM3.35 per litre starting midnight yesterday nationwide.

The previous price of diesel, announced on June 5, was RM2.15 per litre.

In a notice issued to its customers, a company supplying concrete in Temerloh, Pahang said they anticipate a rise in the prices of raw material and transportation due to the increase in diesel prices.

The company said that due to this, all prices of its concrete will also be increased, while additional charges will be imposed for deliveries outside a 30km radius.

A hardware supplier in Sg Besi, Kuala Lumpur said it was forced to increase prices as its transportation costs would be “sharply raised” due to the cutting of diesel subsidies.

“Our transporters and suppliers will be increasing trucking charges by 25% from June 10.

“Due to the increased costs of our transport, shipping and products, we will be increasing the pricing of all our products, while transport charges will also be revised,” read a notice from the company.

In another notice sighted by The Vibes, a tow truck operator said due to the increase in diesel prices, all towing charges will also be increased.

“Prices will be increased according to our operating costs. No subsidy was allocated to the tow truck industry,” read the notice.

In announcing the new prices, Finance Minister II Datuk Seri Amir Hamzah said diesel prices will be based on the automatic pricing mechanism formula for May.

Amir said the government will announce the diesel market price weekly according to standard practice by the ministry.

He said 30,000 private diesel vehicle owners from the B40 category will receive RM200 under the Budi Madani subsidy programme, while Sabah and Sarawak are not affected by the move. – June 11, 2024

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