Building materials, vegetables included in domino effect of diesel price surge

Transport operators say they cannot guarantee that prices will remain the same, citing the exclusion of tipper lorries for subsidies and scant details on compensation programmes.

(MalaysiaNow) – Costs are expected to rise in the construction sector after the 56% surge in diesel prices which has led to suppliers, wholesalers and eateries warning consumers of looming price hikes.

This follows the authorities’ decision to deny subsidy compensation to tipper trucks, the main type of vehicle used in construction logistics.

Speaking to MalaysiaNow, an association representing commercial lorry operators in Johor whose main customers are construction companies questioned the exemption.

The Johor Sand and Granite Lorry Operators’ Association, which represents more than 100 operators, said it had no choice but to raise prices to avoid losses due to the high cost of diesel, which rose from RM2.15 to a record RM3.35 on Monday.

Its president Frankie Chia said they were informed by the domestic trade and cost of living ministry of the decision to exclude tipper trucks from the various subsidy programmes.

“We asked them why tipper trucks are not in the subsidised category. They replied that the subsidies are only meant for the transportation of basic goods which are prioritised. Tipper trucks in the construction sector are not eligible,” Chia told MalaysiaNow.

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