KUALA LUMPUR: The claim that only 15% of Malaysians are affected by the recent diesel price increase does not reflect the broader economic reality, according to MCA Vice President and Economic & SMEs Affairs Committee Chairman Datuk Lawrence Low.
In a statement on Sunday (April 19), Low said the impact of higher diesel prices extends far beyond direct diesel users, as diesel is a major cost component across multiple sectors of the economy.
“Rising diesel costs would eventually be passed through the supply chain and reflected in the prices of goods and services paid by consumers,” he said.
Low argued that the key issue is not how many people purchase diesel directly, but how higher fuel costs affect transportation, construction materials and food prices. He said these increases would make it difficult for any segment of the population to remain unaffected.
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“Sectors such as logistics, construction and tourism are among the first to feel the impact of higher diesel prices.
“Once operating costs rise in these industries, businesses typically transfer those costs to consumers, contributing to broader inflationary pressure,” he said.
Low also said similar assurances had previously been made regarding electricity tariff hikes, but market prices eventually rose as businesses passed on higher costs. He added that companies already facing increased expenses for fuel, gas, wages and rentals have limited ability to absorb further increases.
He urged the government to recognise the wider economic effects of diesel price adjustments and to introduce targeted measures to reduce the burden on businesses and consumers.
Among the proposals put forward were short-term relief measures for SMEs and the food and beverage sector, a review of the diesel pricing mechanism to minimise supply chain disruption, greater transparency in fuel pricing, faster transmission of global oil price declines into domestic fuel prices, and temporary loan repayment deferments to ease business cash flow.
Prompt government action would be necessary to address the systemic impact of rising diesel prices on the economy and cost of living, said Low.
