MELAKA (Bernama) – An increase in the cost of transportation due to a reduction in the subsidy of petrol RON95 and diesel by 20 sen a litre effective Oct 2, will not result in a drastic price increase in other goods said Northern Region Commercial Transport Operators’ Association (PPPPWU) President Datuk Yusoff Ismail.
Yusoff who is also the Kedah Consumers Association President said only and increase in demand and shortage in supply can cause an increase in prices.
“For the time being there has been no discussion to increase the price of transportation in the north. Normally one month after the price increase, discussions will be held to see how much can be absorbed by the transport operators.
“When fuel prices were raised in September last year, there was a five per cent increase in transportation cost but there was only a minor effect in the increase of prices in other goods,” he told Bernama.
Last Friday, Agriculture and Agro-Based Industry Minister Datuk Seri Ismail Sabri Yaakob had said an increase in the price of fuel last September saw the prices of fish go up by eight to 13 per cent.
Ismail Sabri had also said the ministry would monitor the situation to prevent a similar increase.
Yusoff said a five per cent increase in cost of transportation meant the cost incurred by a one tonne lorry to transport goods from Alor Setar, Kedah to Kuala Lumpur saw the price increase from RM50 to RM52.50 a tonne.