GEORGE TOWN: Garbage collection costs are rising due to fuel prices, says Penang Chief Minister Chow Kon Yeow.
He said waste management operations - which rely on diesel-powered lorries - are already feeling the impact of recent price increases.
Citing a recent meeting, he said garbage collection contractors face differing fuel subsidy eligibility, adding to cost pressures.
"Some contractors are allowed to use subsidised diesel, while others are not and must use industrial diesel. With this price surge, it will affect their operating costs," he said.
He noted that unlike other sectors, waste collection schedules cannot be reduced despite rising costs.
"Waste must be collected daily according to schedule, so trips cannot be reduced like in other sectors," he added.
Chow said contractors may invoke clauses in their agreements to claim increased costs from local authorities.
"This means local authorities will also have to bear the increased costs, not just the private sector," he said.
He added that similar pressures were being observed in other industries, including ferry operators in Langkawi, which have reportedly reduced trips due to rising diesel prices.
"This shows that the impact of rising fuel prices is widespread and affects multiple sectors," he said.
On a related note, Chow said while remote working is not new since the Covid-19 pandemic, the state is awaiting further directives before considering broader implementation among government staff.
"This is not something new since the Covid-19 pandemic, but we will wait for further instructions before considering how to implement such directives, including the possibility of working from home to reduce physical travel," he said.
