MASSACRE SUDAH BERMULA - HARGA DISEL MELOMPAT PUNYA PASAL

 OSTB : Folks, I TOLD YOU SO.  There is plenty of diesel news today. Prices of things are going up - because of the 55.8% increase in diesel prices.  It is happening already.

First,  long time reader Sam sent me the following :

Dear Encik Syed, 

Your First Article on Diesel (Pak Lah) : I shared your article on my FB (yesterday?) and within 5 minutes it was removed. I requested a review as I reasoned this is about public awareness. No reply yet. FYI Sir. 

What is wrong with "FB"? Why would they remove my comments about diesel prices in Malaysia? 

Anyway here is the latest news from Free Malaysia Today.

 

Click here : https://www.freemalaysiatoday.com/category/nation/2024/06/11/towing-firms-concrete-producers-raise-prices-after-diesel-hike/

• towing companies, concrete producers raise prices following diesel hike 
• 2 concrete producers confirm raising prices following targeted diesel subsidies
• two concrete producers, DPG Readymix and LCS Marketing confirmed to FMT 
• they had raised their prices following targeted diesel subsidies
•  
• DPG Readymix said not eligible for fleet card for diesel subsidies
• He said other companies in the area had also raised their prices.
• LCS Marketing concrete prices increased by RM12 /cubic metre within 30km 
• “exceeding 30km, additional charges will apply,” said the notice.
• LCS Marketing confirmed the notice, saying due to diesel price hike
•  
• Hong Guan Towing Service also confirmed raised prices
• notice “towing charges increased in accordance” with diesel price increase
• “No subsidy is allocated to tow trucks,” it said in the notice.
•  
• Hardware store Chuan Soon Heng also issued notice of price increase
• citing 25% hike in “trucking charges” effective yesterday.
• “we have to make difficult decision of increasing pricing of all products
• transportation charges will also be revised said the notice.
• The company confirmed notice when contacted

 

OSTB : This morning I received the following images via WhatsApp as well. These are Notices / Pemberitahuan by various companies / individuals informing their customers of increases in the prices of their products or services due to the increase in prices of diesel. I have some comments below each image. Some of these companies have been mentioned by Free Malaysia Today in the report above.

 

1. CHUAN SOON HENG HARDWARE STORE

OSTB : As you can see this notice says "our transportation costs will be sharply raised due to the cutting of diesel subsidies by the government". I called Chuan Soon Heng. They confirmed the notice above was theirs. 

 

2. DPG READYMIX

 

OSTB :  DPG READYMIX's MEMORANDUM says "Kenaikan harga jualan ini disebabkan oleh kenaikan harga diesel yang diumumkan oleh Kerajaan".  

I spoke to the Pengurus Jualan (En Hafiz) who confirmed this notice above was theirs. No exact prices have been determined (as of Tuesday morning) but he said they are looking at a price adjustment of 10% to 15% for their concrete readymix.

 

3. LCS MARKETING

OSTB : LCS MARKETING's  notice says "Due to the increase in diesel prices we anticipate a subsequent rise in raw material and transportation costs".

 

4. HONG GUAN TOWING SERVICE 

OSTB:  This Notice says  "In line with the announcement of the diesel price increase ...we would like to inform that all towing charges will be increased"

 

5.  Majlis Permuafakatan Pemilik Case Kelantan   (Backhoe services). Note : The Majlis Permuafakatan is a group of backhoe operators. This is not an association or a company. They have also issued an adjusted price list for their services after the diesel price hike.

 

OSTB :  The pengumuman by the Permuafakatan Pemilik Case Kelantan says "mengumumkan kadar sewaan baru untuk tahun 2024 dengan mengambil kira kenaikan harga minyak terkini RM3.35 sen..".  They are adjusting their prices because of the increase in the price of diesel.  I checked this notice with a friend in Kelantan who is an ex-president of a contractors association there.

6.  BAS PELANCONG

Here is a Notis Pemberitahuan by a tour bus operator. I spoke to them and they said that they are adjusting their tour prices. Their Kemaman - Hatyai package (3 days 2 nights) has gone up from RM390 /pax to RM420 / pax.

 

 

My Comments :

The 55% jump in diesel prices will cause a cascading effect in the economy. 
It will not be a gentle cascade.
It will be a 'kepala air' type situation where a flash flood suddenly appears. 
Diesel fuel is a basic cost component in almost  all commercial activity.
The prices of all inputs will go up. 

As you can see in the above news report by FMT this is already happening.
Get ready folks. There will be more bad news.  

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.