Automotive diesel

Published on July 10th, 2024 | by Daniel Sherman Fernandez


Will Restaurants And Pasar Tani Increase Prices With Diesel Subsidy Removal

We have seen in the past how selling price in restaurants and at the pasar tani rise with rising fuel prices

If you drive into Southern Thailand from Malaysia, you will notice that the selling price of diesel and also petrol in Thailand is much higher. This is because the Thai government made the SMART ECONOMIC move years ago (started gradually in August 2008, some 16 years ago) to remove fuel subsidies.

This move was met with huge restrictions initially and today we see how far forward Thailand has gone when compared to Malaysia (high subsidies in place only to protect voter interest only). Yes, the Thai Baht is stronger than the Malaysian Ringgit and when you visit South Thailand or any part of Thailand you will notice that without fuel subsidies, the cost of ‘stall food’ and drinks is lower than what you pay anywhere in Malaysia.

When you visit a restaurant in a shopping mall in Bangkok, the prices of food and drinks are the same or sometimes even lower than what you pay in Malaysia.

Pasar Tani

So, why is this so?

Well, ‘some’ restaurant and stall owners in Malaysia take advantage of rising fuel to raise prices. Many logistic companies and delivery businesses who move food and drinks take advantage and raise prices.

Others just providing less quantity for the same selling price (earning more profits). Then there are the countless middlemen in our business industry who profit from earning a lot of money between the farmer/fisherman/raw material provider to the end consumer.

Pasar Tani

The government MUST start removing the middlemen in our food and beverage industry to keep costs low and control inflation.

Meanwhile will OPS KESAN 2.0 make sure that prices are kept as is or not?

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