ALOR SETAR: In the quiet village of Kampung Chepir in Kedah’s Sik district, about 90 kilometres from here, the impact of a war half a world away is being felt in the most immediate way – at the fuel pump.
For 40-year-old Mohamad Wahab, the disruption is no longer abstract. It is measured in kilometres travelled, litres rationed, and livelihoods squeezed.
In Kampung Chepir, the consequences are stark. The village’s community fuel station has temporarily ceased operations, unable to sustain the higher capital required to maintain fuel stock.
“Previously, each fuel delivery would cost around RM11,000 to RM13,000. But with fuel prices rising so sharply now, the cost per delivery has gone up to more than RM20,000,” he said.
“The owner can no longer cope with the higher capital turnover, so operations have had to be suspended since last week,” said Mohamad, who used to work at the fuel station.
Malaysia has not been spared. Although petrol subsidies remain in place, diesel prices were rationalised last year, with retail prices rising sharply to RM5.97 per litre in Peninsular Malaysia – a shift that has rippled across supply chains. The latest geopolitical tensions have since pushed global crude prices higher, tightening supply and increasing logistics costs.
“Today, it has become very difficult for residents around Chepir. We now have to travel far just to get fuel – for example, to Pekan Sik or Batu Lima. A return trip is more than 20 kilometres,” Mohamad said.
The government has recently eased the ban on filling petrol in small containers, imposed to prevent subsidised fuel abuse and smuggling.
“For the past few days in Sik, from what I understand, purchases are limited – only up to 20 litres per person. I buy it for my own use, for my motorcycle and car,” he added.
Residents who do not have the means to travel are also facing rationing.
Mohamad says supply shortages have spread to rural retail points.
“In rural areas, some small sundry shops used to sell petrol for motorcycles. Recently, there has been no fuel at all in these shops.
“If there is, it can go up to RM5 per litre, so they have to sell at a higher price because they are also buying at a higher cost. Prices vary from one shop to another.”
In response, informal networks have emerged.
“There are young people who buy 20 litres from petrol stations and then sell small amounts to villagers at about RM3 per litre. It is not for profit, just to cover their travel costs – more as a service to villagers who cannot afford to travel to town,” he said.
Still, the strain is evident, particularly among small traders.
“This has become a problem for rural livelihoods. It is difficult to run any kind of small business now. For example, those selling nasi lemak or kuih have to bear the additional cost of travelling to town.
“They are afraid to raise their prices because customers may not buy, so they end up absorbing the extra cost themselves.
“It is a big test for everyone at the moment.”
There is some relief. The federal government has expanded the Bantuan Asas Rahmah (SARA) programme, increasing allocations and widening eligibility since last August.
The initiative allows recipients to purchase essential goods using their MyKad at registered outlets, cushioning the blow on household grocery spending.
“In terms of daily necessities and food, we can still manage because of the Bantuan Asas Rahmah. We use our MyKad to buy essential goods. So, grocery expenses are not too burdensome,” Mohamad said.
“But the real impact is from fuel. Those who own diesel vehicles, including factory van operators, are now forced to switch to petrol.”
Consumer groups warn that the full impact of rising fuel costs has yet to be fully reflected in retail prices – but the pressure is building.
Consumer Association of Kedah president Mohd Yusrizal Yusoff said price increases are often subtle but cumulative.
“On paper, it looks like prices are stable. But consumers can feel the difference,” he said.
He explained that while enforcement by the Domestic Trade and Cost of Living Ministry focuses on specific items and selected locations, price adjustments are happening gradually across the supply chain.
“Even when demand is low, prices are creeping up,” he said, citing eggs sold at up to 60 sen each in some sundry shops.
The disparity is also geographic. Large supermarkets, benefiting from bulk purchasing, are able to maintain prices. Smaller rural retailers, however, face higher logistics costs.
“In towns, soy sauce might be RM4. In rural areas, it can reach RM5 or RM6,” he said.
The pressure has already forced some wholesalers to cut delivery frequency from daily runs to just three times a week, passing on higher fuel costs to customers.
“This is where rural consumers are hit hardest – because of transport costs,” Yusrizal added.
Vegetable prices, he noted, have doubled in some cases, with chillies rising from RM10-RM11 per kilogramme to as high as RM25. However, the impact is less visible to consumers who purchase in small quantities.
“The real effect will be clearer in the next one or two months,” he warned.
Beyond fuel, global supply chain pressures are compounding the problem. Higher shipping costs, import taxes, and currency fluctuations are pushing up prices of imported goods – from onions to canned sardines.
Yusrizal reiterated long-standing concerns over Malaysia’s food security, warning that prolonged conflict could disrupt imports if exporting countries prioritise domestic supply.
“Policies are there, but implementation remains weak. Even padi farmers’ issues are unresolved,” he said.
For traders, the situation remains precarious.
Federation of Malaysian Hawkers and Petty Traders Associations vice-president Baharudin Mohamed Ali said its 400,000 members nationwide are holding prices steady – for now.
“We have not seen a significant increase in raw material costs yet, so traders are trying to maintain prices,” he said, welcoming the government’s continued petrol and diesel subsidies.
However, he warned that transport operators are already calling for expanded diesel subsidies to offset rising costs.
“If lorry charges go up, it will affect the price of goods and raw materials. That is our concern,” he said.
A restaurant chain operator, who declined to be named, said early signs of price increases are already emerging.
“Vegetables and chicken prices have started to rise. Management costs have also gone up due to fuel prices. We expect a more noticeable impact by May,” he said, adding that menu prices may have to be reviewed if the situation worsens.
Consumers, meanwhile, are bearing the cumulative burden – often in ways not immediately visible.
Consumers’ Association of Penang president Mohideen Abdul Kader said some traders are passing on costs indirectly.
“They may not increase prices outright, but portions are smaller, or packaging costs are included without consumers realising,” he said.
He described a supply chain where rising transport and input costs are being passed down at every level – from farmers to middlemen to retailers – ultimately landing on consumers.
“At the end, the consumer is paying for everything,” he said.
Mohideen also raised concerns about profiteering, alleging excessive mark-ups in some cases, and called for stricter enforcement.
“This is a crisis situation. Enforcement must be firm – no warnings, just action,” he said.
He urged government agencies such as the Agriculture Department and the Federal Agricultural Marketing Authority (FAMA) to play a more active role in bypassing middlemen by purchasing directly from farmers and selling to consumers at cost.
At the same time, he called on consumers to adapt.
“Compare prices, avoid waste, and cook at home where possible,” he said, adding that panic buying – already observed in some areas – could worsen inflationary pressures.
“We must not create a vicious cycle where demand pushes prices even higher.”
The government has also introduced work-from-home arrangements for civil servants as part of cost-saving and energy efficiency measures, aimed at reducing fuel consumption.
Yet, as the crisis unfolds, the limits of such interventions are becoming clear.
“The key issue is fuel – and that is beyond our control,” Mohideen said.
Back in Chepir, Mohamad agrees. Aid programmes may ease the cost of food, but for rural communities dependent on mobility, fuel remains the lifeline.
And as long as global tensions persist, that lifeline looks set to remain fragile.
