GEORGE TOWN: Farmers and businesses that do not qualify for subsidised diesel are reeling from the 25.6% hike in diesel caused by supply disruptions in the Gulf countries.
And farmers seem to be feeling it the most.
Malaysia’s fuel prices are updated every Wednesday evening and diesel went from RM3.12 per litre to RM3.92.
“We need diesel for water pumps, tractors, generators, small lorries and many types of machinery. We buy diesel nearly every day,” he lamented.
Smallholders do not qualify for fleet cards to buy subsidised diesel and instead receive the Budi Agri-Komoditi, a monthly cash aid that was increased to RM300 a month from RM200 previously.
Lau said farmers had been grappling with high fuel costs after blanket diesel subsidies were removed in June, 2024.
“Many farmers have quit and sold off their land,” he said.
“If too many farmers quit, the country might end up relying more heavily on imported vegetables,” he said.
As for the price of vegetables, Lau said he had not heard of any of his association members wanting to raise prices yet, but it was too soon to tell.
As for transporters, Association of Malaysian Hauliers secretary Mohd Azuan Masud said those who qualify for the Subsidised Diesel Control System continued to get their monthly subsidised diesel quotas.
Those in public transport are paying RM1.88/litre, while it is RM2.15/litre for eligible logistics vehicles.
But transporters heavily reliant on diesel beyond their monthly quotas may need to review their fuel adjustment factor to account for the new price, he said.
“Some businesses do not qualify for subsidised diesel. The impact will be felt once they refill their tanks,” he added.
Fishmonger Jordan Tan, 32, who sources seafood from states including Perak and Selangor, said large lorries carrying ice boxes of fish charge him roughly RM35 per ice box.
He said delivery charges had increased by about 10% earlier this year.
“Transporters haven’t told me if prices will be adjusted again,” he said.
But fish farmers are bracing for hikes in the price of fish feed.
Sungai Udang Fish Farm Association chairman Tioh Tiang Lai explained that in fish feed production, a lot of machinery such as conveyor belt engines, bulldozers and forklifts run on diesel and such factories did not get subsidised diesel.
“Such a sharp rise in diesel price will definitely affect fish feed prices. We are worried the higher costs will eventually be passed on to consumers,” he said.
