AMH Responds: Current Fuel Price Hikes
In response to the recent fuel price hikes, the Association of Malaysian Hauliers responded in a statement issued on 2 April 2026.
How have recent diesel price changes affected your daily operating costs and income?
The recent diesel price changes have indirectly impacted operators, particularly in terms of credit arrangements with oil companies. Credit limits are typically based on the pump price rather than the subsidised price. This reduces the available credit, causing some operators to exhaust their limits much earlier—sometimes within a week—despite the usual 30-day credit term. As the subsidy adjustment is only reflected at the end of the month, operators are often required to make early payments to continue using fleet cards, which affects cash flow.
What portion of your expenses is fuel, and how sensitive is your business to price fluctuations?
Fuel is one of the major components of operating costs, alongside other significant expenses such as driver wages (including minimum wage adjustments), engine oil, spare parts, tyres, and maintenance. While container hauliers are currently recipients of diesel subsidies—which helps cushion the direct impact—we are still facing cost pressures from rising prices of other operational inputs.
Have you had to increase transport charges, and how are clients responding to that?
As an association, we are guided by the Competition Act 2010 (MyCC), which prohibits us from advising members on pricing or tariff matters. However, we understand that some operators have adjusted their service rates to reflect increased costs. Based on feedback, many clients are aware of the current cost environment and have generally accepted these adjustments.
Are lorry drivers absorbing the cost, or is it being passed down the supply chain?
Operators are generally unable to absorb these increased costs and will need to undertake cost recovery through their customers. This is a common practice in ensuring business sustainability within the logistics sector.
Which types of goods or sectors are most affected by rising transportation costs?
High-density cargo and perishable goods are particularly affected. For example, refrigerated transport requires additional energy consumption, and specialised equipment such as side loader trailers also incurs higher operational costs due to additional power requirements.
Have higher diesel prices changed your delivery routes, frequency, or efficiency?
At present, there has not been a significant change in delivery routes, frequency, or operational efficiency. However, operators continue to monitor the situation closely.
How effective are current government subsidies or support measures for lorry operators?
The diesel subsidy mechanism has provided some level of support, particularly in stabilising prices of essential goods for the public. However, the benefit is more pronounced for end consumers and cargo owners, rather than directly addressing operational challenges faced by hauliers.
That said, AMH would like to highlight a critical concern regarding the *significant gap between the subsidised diesel price (RM2.15) and the current pump price (RM6.02)*. This wide price differential creates a strong economic incentive for illegal activities such as fuel diversion and cross-border smuggling.
From an industry perspective, this not only undermines the integrity of the subsidy mechanism but also creates an uneven playing field. Legitimate operators who comply with regulations are placed at a disadvantage, while leakages in the system result in substantial fiscal losses to the government.
Furthermore, the existence of such a large gap increases enforcement challenges and may lead to stricter controls or compliance requirements imposed on genuine operators, adding further operational burdens. AMH believes that while targeted subsidies are necessary, the mechanism must be continuously refined to minimise leakages, ensure that benefits reach the intended sectors, and avoid unintended consequences such as market distortions and illicit activities.
If diesel prices continue to rise, what long-term impact do you expect on the logistics industry and cost of living?
In the long term, the industry may explore alternative energy solutions such as electric vehicles (EV trucks) or other green technologies. Rising logistics costs will inevitably contribute to higher cost of living due to inflationary pressures. Continued government support measures will be important in managing these impacts.
Yes, container hauliers in Malaysia are still benefiting from the government’s diesel subsidy under KPDN’s SKDS 2.0 programme. However, supporting service providers to the haulier industry—such as tyre suppliers, breakdown service providers, and other related services—do not receive the same subsidy.
While the primary fuel cost for transportation remains controlled, the costs within the supporting ecosystem may increase. As a result, hauliers may need to make slight adjustments to their rates to accommodate these rising operational support costs, even if the increase is not significant.
On average, a container trailer covers about 8,000 to 12,000 km a month, with diesel usage around 3,500 to 5,000 litres per truck. At current pump prices, that translates to roughly RM20,000 to RM30,000 monthly fuel cost, making diesel one of the biggest operating expenses.
Most drivers do not pay upfront, as companies provide fleet cards with credit facilities. However, the issue now is that credit limits are based on the pump price instead of the subsidised price, causing limits to be exhausted much faster—sometimes within a week instead of the usual 30 days.
This puts significant cash flow pressure on smaller operators, who must make early payments to continue operations. If they are unable to do so, it may lead to reduced fleet utilisation, which can indirectly affect drivers’ income.