Restaurants set to mark up prices as diesel hike triggers domino effect

Teh tarik is among the popular food and drinks that will be affected, say restaurant owners.

(MalaysiaNow) – Restaurant operators are almost certain to raise prices after Putrajaya scrapped blanket subsidies for diesel, causing the fuel widely used in the logistics sector to rise to an all-time high of RM3.35 per litre.

Restaurant owners contacted by MalaysiaNow said teh tarik, Malaysia’s most popular drink, would be among the items affected as ingredients such as tea dust and condensed milk have become more expensive.

A spokesman for an association of Indian restaurants said the diesel price hike, which came into effect on Monday, had had a domino effect from logistics to raw materials and food prices.

“Some of our vendors and suppliers are increasing prices,” said N Shanmugam, secretary-general of the Malaysian Indian Restaurant Operators Association.

“But we have not received anything in black and white yet,” he added.

Shanmugam said restaurants would not increase prices as long as suppliers maintained theirs.

The price of diesel in Peninsular Malaysia has risen to RM3.35 per litre since June 10, as part of the Anwar Ibrahim government’s plan to end blanket subsidies on some basic items.

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