Manufacturers say they have no choice but to increase price due to global fuel hike

KUCHING: Consumers will need to dig deeper into their pockets to quench their thirst as a box of bottled water is selling RM2 more starting today.

Sarawak bottled water manufacturers dropped the bombshell yesterday, saying they had no choice but to price their bottled water at RM10 per box of 500ml and 1.5 litre, from RM8 previously.

“The global increase in fuel prices gives us no choice but to raise our prices as we have to fork out more for packaging and also logistics,” Water Genesis Sdn Bhd director Goh Min Teck told a press conference this yesterday.

Acting as the spokesman for all 18 licensed manufacturers in the state, Goh said that manufacturers were scrapping by a marginal cost for nearly a year already ever since fuel prices rocketed worldwide.

He said that the fuel prices had cost raw materials especially plastic to double in cost from RM2 per kg to around RM5 per kg.

He said bottled water manufacturers in the state bought their raw materials for packaging from Peninsular Malaysia and overseas.

According to Goh, there was no need to seek approval on the increase given that drinking water was not a controlled item.

According to him, bottled water is currently sold to retailers at a very cheap rate compared to some six years ago when a box would cost RM18.

He said that as more competitors ventured into the market, the price was then forced downward to RM8.

The manufacturers assured consumers that the measure taken was not to make an extra buck but to cope with the fuel price hike.

The press conference was attended by 10 bottled water manufacturers from all over Sarawak while the rest, although not present, had given consent to the increase.

A box of 500ml bottled water holds 24 bottles while in a box of 1.5 litre, 12 bottles, which means manufacturers’ price per bottle now will be about 42 sen for a 500ml and about 83 sen for a 1.5 litre.

If the usual price of a bottled water is RM1 (500ml) and RM2 (1.5 litre), then retailers would be earning 58 sen and RM1.17 respectively in profit. However, this profit could increase if retailers were to hike their prices following this announcement.