Pasar malam traders plan to increase food prices, with some saying RM200 monthly diesel aid is not enough

While the government’s fuel subsidy rationalisation programme, which began with the switch to a targeted diesel subsidy on June 10, continues to provide monthly financial assistance to a considerable number of users under the Budi Individual and Budi Agri-Commodity categories, it seems that there are those for which the RM200 cash assistance isn’t enough to offset the increased spend for the fuel, which is now priced at RM3.35 per litre.

Small-scale traders and businesses are among these. As The Star reports, pasar malam food traders are reportedly planning to increase prices following the diesel hike, to offset the extra they now have to spend on the fuel.

According to Pasar Malam Bumiputera Shah Alam and Klang chairman Kamarul Nizam, some of their night market traders intend to increase prices by July 1. He however added that the quantum of the increase has yet to be determined, as traders were still waiting to see how the new diesel prices would impact them.

Meanwhile, petty traders and Jalan Cemur Kuala Lumpur night market chairman Moganae Sundram said the government’s RM200 Budi Madani cash assistance is insufficient to cover the increased fuel costs. As an example, the fishmonger said he uses a pick-up truck to transport his fish from Perak to Kuala Lumpur and now has to spend an additional RM600 on diesel.

Pasar malam traders plan to increase food prices, with some saying RM200 monthly diesel aid is not enough

He said he would not increase prices yet, as his competitors have no plans to do so. “If I increase prices now, I would lose out to those selling cheaper,” he said. However, he believed it is only a matter of time before there would be an increase in prices. He added that other traders, including those selling vegetables and using their own transport to ferry goods from wholesalers, were also affected.

Things are somewhat better over at the larger scale land transport and logistics end, where the subsidised diesel control system (SKDS) 1.0 and 2.0 schemes provide subsidised diesel to a total of 33 types of land transport vehicles.

According to Malaysian Bakery, Biscuit, Confectionery, Mee and Kuay Teow Merchants Association president Chaang Tuck Cheong, prices of related goods have remained unchanged because several sectors, particularly food and logistics, continue to enjoy targeted diesel subsidies.

However, he said that it has not been smooth sailing, as there had been instances where lorry drivers were unable to use their fleet cards to refuel due to system glitches. “Drivers have to pay cash upfront, and they may not be able to claim it back,” he said. Also, while the fleet card provides more than enough diesel to cover monthly usage for users, Chaang said a clearer projection would come about when claims are processed.

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