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Bus operators aren’t the only ones feeling the effects from the fuel crisis brought about by the Middle East conflict, because the increase in the price of diesel is also taking a toll on commercial transport, forcing some hauliers to raise prices and causing others to exhaust credit limits with oil companies, the New Straits Times reports.
According to Association of Malaysian Hauliers secretary-general Mohamad Azuan Masud, while hauliers enjoyed subsidies for fuel, other costs – such as drivers’ wages, engine oil, spare parts, tyres and maintenance – weighed them down.
In this regard, hauliers transporting high-density cargo and perishable goods were particularly affected. “Refrigerated transport requires additional energy consumption and specialised equipment, such as side loader trailers, also incurs higher operational costs due to additional power requirements,” he said.
He added that some operators had adjusted their rates to reflect increased costs. “Based on feedback, many clients are aware of the current cost environment and have generally accepted these adjustments,” he said.
Beyond this, the surge in the price of diesel, which had gone from RM3.12 per litre in early March to RM6.72 this week, has also affected credit arrangements with oil companies. “Credit limits are typically based on the pump price rather than the subsidised price. This reduces the available credit, causing some operators to exhaust their limits much earlier, sometimes within a week, despite the usual 30-day credit term,” he said
He added that the subsidy adjustment was only reflected at the end of the month, and operators were often required to make early payments to continue using fleet cards, impacting cash flow. Despite the challenges, he said there had not been a significant change in delivery routes, frequency or operational efficiency.
Azuan said that the diesel subsidy mechanism has provided some level of support, particularly in stabilising prices of essential goods for the public, but the benefit is more pronounced for end consumers and cargo owners, rather than directly addressing operational challenges faced by hauliers. “Continued government support measures will be important in managing these impacts,” he said, adding that while targeted subsidies were necessary, the mechanism must be continuously refined.
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[[{“value”:”Bus operators aren’t the only ones feeling the effects from the fuel crisis brought about by the Middle East conflict, because the increase in the price of diesel is also taking a toll on commercial
The post Despite subsidies, diesel price is affecting Malaysian hauliers – credit limits are being exhausted earlier appeared first on Paul Tan’s Automotive News.”}]] Read More Paul Tan’s Automotive News