SLTA calls for price review of diesel
SLTA is feeling helpless with the increase in oil price. If companies could not absorb the increasing cost, the only solution to this matter would be increasing the transport charges which means eventually, consumers have to bear the cost. — Jong Foh Jit, SLTA president
KUCHING: Sarawak Lorries Transport Association (SLTA) has called on the government to review the price of diesel or consumers would bear the brunt of rising costs.
According to SLTA president Jong Foh Jit, diesel takes up about 20 to 30 per cent of the operating costs of members.
“SLTA is feeling helpless with the increase in oil price. If companies could not absorb the increasing cost, the only solution to this matter would be increasing the transport charges which means eventually, consumers have to bear the cost.
“SLTA urges the government to pay serious attention to the impact of the increased oil price,” he said at the SLTA’s 33th anniversary dinner held in conjunction with the Lunar New Year celebration on Friday.
Tan Kai, a political secretary to the chief minister, who represented Local Government Minister Datuk Dr Sim Kui Hian, was the guest of honour at the dinner.
Jong pointed out that Malaysia, as an oil producing country, should see an increase in revenue when the global oil price goes up ‘and the government should think of ways to give back to society’.
He also pondered if it was reasonable for Malaysia to apply the measurement formula as practised in Singapore, which is a non-oil producing country.
Of late, he said Deputy Finance Minister Datuk Johari Abdul Ghani was quoted as saying that Malaysia’s oil price was calculated based on the Means of Platts Singapore (MOPS).
The minister added that Malaysia had to pay RM500,000 for that price index system (MOPS) and it was also up to the Singapore government whether to let Malaysia reveal the calculation method, added Jong.
It is made to understand that MOPS is the average of a set of Singapore-based oil product, price assessments published by Platts, a global energy, petrochemicals, metals and agriculture information provider and a division of McGraw Hill Financial.
Jong, who is also president of Pan-Malaysia Lorry Owners’ Association (PMLOA), said the diesel in Malaysia used to be Euro 2 grade that was added with seven per cent of palm oil, also known as B7 with 500mg/kg sulfur content.
However, Singapore smoke emission level should be under 40 HSU (Hartridge Smoke Unit) and with the Euro 2 grade, lorries from Malaysia could not enter Singapore, he noted.
“The Malaysian government then introduced Euro 5 grade. The price of Euro 5 diesel is 10 sen more but the sulfur level is only 10mg/kg.”
He added that more than 3,000 lorries travel to Singapore on a daily basis.
Elsewhere, Jong was delighted that the government is finally implementing the Pan-Borneo Trunk Road to an R5 standard highway.
“The Pan-Borneo Highway project is contracted by 11 financially-stable developers across Malaysia including (Sarawak’s) Hock Seng Lee Berhad and Naim Holdings Berhad.
“We also hope that Works Minister Datuk Seri Fadillah Yusof can supervise the project from time to time to ensure that the works are completed on time.”