DESPITE assurances that there will be no increase in the cost of living and day to day expenses, it seems like the increase in diesel has had immediate effects on the market.
Some businesses have started posting notices about an immediate increase in price of their services.
One such business is from the tow truck industry, with one business sharing that their business will be increasing the price of their services immediately as they did not qualify for subsidies.
A quick check with the business revealed that towing a car on a flatbed from Ipoh to Kuala Lumpur used to cost RM700 but now costs RM1,000.
The increase in prices is expected to have far reaching ripples with this being just the tip of the iceberg.
According to reports, over 300,000 people are expected to benefit from subsidies but the total number of diesel users far exceeds that.
The government has also outlined the type of vehicles that qualify for subsidies and sadly private vehicles that have been registered to be used by companies and organisations do not qualify for that, and that is the category where some tow trucks fall under.
Diesel vehicles that have been registered for e-hailing as well as tourist vans and busses do not qualify for subsidies.
It is unlikely that those operating within this industry will simply absorb the increase in price. This increase in cost will unfortunately be passed on to the paying consumer, inadvertently making daily life more expensive.
