Cargo surcharge hiked, bus operators want fare review

The increase in the price for RON95 petrol and diesel will see a hike in cargo fuel surcharge by one haulier, while the Pan Malaysian Bus Operators want fares to be adjusted.

Container haulier Taipanco Sdn Bhd said it will raise its cargo fuel surcharge from 16.19 percent of the tariff rates to 18.2 percent.

"Haulage rates differ depending on the area. But in general, if the rate is RM100, this means that our customers will have to pay an additional RM18.20 for the Fuel Adjustment Factor (FAF)," said Taipanco executive director Nazari Akhbar when contacted.

"When diesel pump prices were RM1.80 per litre, they would have paid RM16.19. We will inform our customers of the new FAF today," he added.

He said the FAF schedule was set by the company during the Abdullah Ahmad Badawi administration, which brought about volatility in fuel prices because of subsidy reductions.

However, Nazari, whose company leads the haulage business out of Port Klang, stressed that it would be up to other hauliers to decide on their rates as the industry is governed by the Competition Act 2010.

The pump prices for diesel is now RM2 per litre, while RON95 is sold at petrol stations at RM2.10 per litre.

'Raise bus fares of we'll fold'
Pan Malaysian Bus Operators Association president Mohamad Ashfar Ali said bus fares will need to be adjusted as a result of the fuel price hike, or it will spell the end of the industry. 

However, the operators will need government approval before it can raise fares.

"In Malaysia, bus fares are controlled by the government. We can't simply increase bus fares....We applied for 30 percent rise in bus fares in May but the government has not approved it," he said. 

The government only approved a 10 percent surcharge for express buses over the Hari Raya period from July 8 to Sept 8. 

Mohamad Ashfar said he hopes the government can consider extending the surcharge  further, following the diesel price hike.

He also urged the government to increase subsidised diesel from 1,400 to 3,000 litres per month for stage buses and 2,800 to 5,000 litres for express buses. 

Goods will be more pricey
Federation of Malaysian Consumer Associations communications director Mohd Yusof Abdul Rahman said the fuel price hike will raise transport charge for goods and services.

"The cost of living will be higher for the people... but when the government increases the price of fuel (at pumps by cutting subsidy), they got the money to help the poor and the people in need," he added.

On the other hand, Federation of Malaysian Manufacturers president Yong Poh Kon said manufacturers too will feel the pinch as logistics will be more expensive.

"Now this. Everything else is going to cost more now," Star quoted him as saying.