Housing prices might be affected, warns MTLOA

The Malaysia Tipper Lorry Operators Association (MTLOA) said housing prices might be affected and increased due to the newly implemented targeted diesel subsidy.

“It is quite difficult for them to accept this suddenly, as the tipper lorry industry works closely with the construction field.

“Therefore, the cost of construction will indirectly face a sudden increase, as you have to use tipper lorries to ferry building raw materials such as stone, sand, and cement,” its chairman Datuk Michael Loo Leep said during a press conference today.

He explained that the rise in raw material transport costs will drive up housing prices, burdening Malaysians with higher house sale prices.

He said that the cost of diesel fuel had increased by 55 per cent following the withdrawal of subsidies by the government, reported Malay Mail.

He has cautioned that if the government does not consider subsidising diesel for their service, the logistics industry may raise its fees by 30%.

He further said that tipper lorry drivers’ incomes would be in jeopardy unless they were permitted to raise their fees.

Presently, the association comprises 5,500 members, each with an average of 10 lorry drivers across Peninsular Malaysia.

Effective June 10, bulk diesel subsidy in Peninsular Malaysia were terminated, leaving prices vulnerable to market fluctuations.

Retail stations across Peninsular Malaysia have established diesel prices at RM3.35 per litre.