Lorrymen hike rates 45pc

Sandakan: The Federation of Sabah Lorry Transportation Associations (FSLTA) decided Friday to increase transportation rates by 45 per cent with immediate effect.

Its President Steven Chua Pui Ming told a press conference that if there was any further increase in the diesel price, the FSLTA would determine the rates to avoid business closure due to operational losses.

"We are alarmed by the Government's move to hike the price of diesel by RM1 to RM2.584 per litre on June 5. This is the biggest increase in fuel prices ever in the history of Malaysia."

According to him, vague guidelines on the fleet card fuel subsidy by the Domestic Trade and Consumer Affairs Ministry reflected the inability of the Government to resolve the issue.

The subsidy is restricted to certain types of vehicles such as containers, haulage for electronic products, rice and food produce among others.

"Sabah is in the process of infrastructure development. A large number of trucks and heavy machinery is required to transport steel bars, cement, sand and stones from ports/plants to construction sites throughout Sabah.

"Similarly development of huge oil palm plantations and existing estates require fertilisers, machinery, diesel, etc, and the above developments rely on large amounts of diesel to operate.

"Sabah is an oil and gas producing State and the palm oil industry is also benefiting the Government in terms of huge tax collection.

"But it is not apparent that the subsidy can benefit Sabah. Only a small sector of transportation operators of consumer products are benefiting from the subsidy and limited to 1,800 to 2,160 litres of diesel per month per truck (enough to cover two trips from KK to Sandakan). How can the subsidy have any impact on the operational cost of transportation operators?," he asked.

FSLTA called on the government to liberalise the diesel fuel subsidy to include all types of trucks as geographically Sabah is different from Peninsular Malaysia.

Chua pointed out that the 63 per cent increase in diesel price over the previous price and the Government's intention to float fuel prices may aggravate the problem.

The price of lorry spare parts are up by 100 per cent, batteries, by 180 per cent and steel materials for trailers by 400 per cent. Imagine the heavy burden that the transportation operators have to bear, he said.

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Sabah