Diesel prices fall—but can the relief last?

 

Letter to editor

DIESEL prices have seen sharp volatility in recent weeks, creating uncertainty for businesses and transport operators that depend heavily on fuel costs.

On March 4, diesel was priced at RM3.04 per litre. Prices then rose steadily over several consecutive weeks, including significant increases of 50 sen and 70 sen, before reaching a peak of RM6.72 per litre by April 9.

Encouragingly, the trend reversed shortly after. On April 16, the price dropped by 75 sen to RM5.97 per litre, followed by a further decline of 85 sen on April 23 to RM5.12 per litre.

If this downward momentum continues, diesel prices could fall further to around RM3.52 per litre by early May. At such levels, the cost burden on tour bus and van operators would become far more manageable, offering some much-needed relief to the transport sector.

However, the outlook remains uncertain. Geopolitical tensions—particularly following the United States and Israel’s strikes on Iran—continue to cast a shadow over global oil markets. Any disruption to supply or shipping routes could quickly reverse the recent gains.

Even if supply remains stable, the prices of goods and services may not ease immediately, as businesses continue to adjust to earlier cost increases.

For sectors such as tourism and logistics, sustained stability in diesel prices will be crucial.

Lower fuel costs would not only reduce operating expenses but also help maintain Malaysia’s competitiveness as an affordable destination for foreign visitors. 

YS Chan
Kuala Lumpur

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

- Focus Malaysia.