Restaurant Operators Feeling The Heat From Fuel Price Hike.

KUALA LUMPUR: Restaurant owners express worry that the fuel price hike, enforced on Tuesday, will have a negative impact on their businesses and if not monitored, may be forced to raise the food prices. Domestic Trade, Cooperatives and Consumerism Minister Datuk Hasan Malek had yesterday warned traders and restaurant operators not to raise food prices following the move to cut fuel subsidies and was unlikely to affect food production costs
. He said the ministry's studies showed that the increase in fuel costs was projected to raise food prices by only 0.1%. However, despite the warnings, many restaurant owners felt that the increase in food prices were still under control for now but could not predict what the situation would be like in a month's time.
 To shed light on the matter, Malaysian Digest rounded up opinions from several restaurant owners in the city to find out the affect of the fuel price hike on them. Pengusaha restoren Melayu, Mohd Nor Azmi HusinMohd Nor Azmi Husin, 53, a Malay cuisine provider said many, including his customers were worried that the food prices in the restaurant would be raised, following the domino effect of the fuel price hike. "Since this morning, people have been asking me whether I will increase the food prices. This means that not only I, but my customers too are thinking about the impact of the announcement,"
 He said if the price increase materialized, it would involved mainly the transportation costs from the suppliers and wholesalers. "I can't predict what will happen next but right now, all prices in our outlet are still the same. I suspect, in a week's time, the suppliers will increase their prices," he said.
 Mohd Nor said, among the items that would be greatly affected includes goods such as chicken, fishes and vegetables. "Even before Ramadan, the price of chicken had gone up. Now with the fuel price hike, surely it will surge again," he said, adding that currently he bought the chicken supplies at RM8 per kilogram. Indian Muslim food operator, Badrul Jamal Mohd Salleh, 55, said he too were worried over the effect of the fuel price hike on Tuesday.
 He said 20 sen increase was just too high compared to the previous price hike. "We have experienced a price hike but not at 20 sen. How are we to operate if the prices of our raw material goes up. At one point, we will have to raise the prices too," he said.
 He said the impact of fuel price hike on consumers and food operator like himself would be widespread.
 
Comparison of Petrol Price Between ASEAN Country ( As of 2013 )
 Country                       Price
 Indonesia                     RM 3.09
 Brunei                          RM 1.55
 Filipina                         RM 3.64
Singapore                     RM 5.27
 Thailand                       RM4.14
Kemboja                      RM 4.51
 Laos                            RM 4.97
 Vietnam                       RM 3.72

 Source: MyTravelCost.com

 "If prices of essential goods go up, other costs will be effected as well. Businesses will feel the heat if it does not compensate. We are actually caught in the middle when things like this happened," Badrul Jamal however said he did not blame the government for increasing the fuel prices as he felt the move to reduce fuel subsidies were necessary and would have a long term positive effect on the rakyat.
 "I understand why the government is doing this. In fact globally, our fuel prices is not too expensive due to the 63 sen per litre subsidy absorbed by the government. Pengusaha restoren Cina, Sayed Zahid KaderA Chinese Muslim restaurant owner, Sayed Zahid Kader, 47, too did not denied that the move would benefit the people in future but lamented that his business woould be affected nonetheless.
 "The government did what they have to do for the country, we as the rakyat will have to be careful how we spend our money after this. As for me, I will have to monitor the situation in the next few weeks, "Maybe there will be a price increase because of it but as food operators, we will have to see what happens," he said. Sayed Kadir said customers would be angry if there was a price increase but in time, would have to learn the fact that this was happpening throughout the country.
 "This means that if all the suppliers increase their prices simultaneously, we will be left with no choice but forced to do the same to compensate." he said. Prime Minister Datuk Seri Najib Razak on Monday night annouced the increase of RON95 petrol and diesel at 20 sen, in an efffort to restructure, in stages, the government spending
. As a result, RON95 is now sold at RM2.10 per litre while diesel at RM2 per litre. The government in the meantime still absorbed subsidy of 63 sen per litre for petrol and 80 sen per litre for diesel. Najib, who is also the finance minister said the move was part of an effort to strengthen the country's financial standings in the face of the uncertain global economic outlook.
 He said to eased the people's burden, the government would continue giving out the Bantuan Rakyat 1Malaysia (BR1M) which would be announced during Budget 2014 soon.