Old news report about steel price rise falsely linked to Malaysian diesel subsidy cuts
- Published on July 23, 2024 at 10:24
- 2 min read
- By Najmi Mamat, AFP Malaysia
Copyright © AFP 2017-2024. Any commercial use of this content requires a subscription. Click here to find out more.
The false claim was shared in a post on social media platform X on July 1, 2024, with a sarcastic Malay-language caption featuring a grinning emoji that read: "Diesel prices suddenly increased, while not a single item has increased in price."
The post included a screenshot from the Malay-language Utusan Malaysia newspaper with a headline that read: "Steel rises from RM2,800 (598 dollars) to RM4,000 per tonne."
The claim surfaced after Malaysia axed a blanket subsidy on diesel in a bid to curb government spending and fuel smuggling into neighbouring countries in June 2024.
The move saw diesel prices rocket up by 56 percent after the cuts took effect in peninsular Malaysia -- East Malaysian states Sabah and Sarawak were exempted due to greater travel distances -- compounding Malaysians' cost-of-living woes (archived link).
The same screenshot was also shared alongside similar false claims elsewhere on X here, and on Facebook here, here and here.
In fact, the article was published in October 2021 and predated the diesel subsidy cut.
A combination of reverse image and keyword searches on Google found the Utusan Malaysia article was published on October 26, 2021 (archived link).
Below is a screenshot comparison of the image in the false post (left) and the original Utusan Malaysia report (right):
The 2021 report stated construction projects in the northern Perak state were being delayed as the price of steel almost doubled due to high demand.
The price rise was also reported by local online news portal Suara TV on October 27, 2021 (archived link).
The price of steel did rise slightly in April 2024 -- two months before the diesel subsidy was cut -- by 0.7 percent from 3,702.88 Malaysian ringgit to 3,730.46 ringgit per tonne, state news agency Bernama reported (archived link).
According to the World Bank, the April increase "reflected positive sentiment about stronger demand amid concerns of supply disruptions for some key metals" (archived link).
The international financial institution further predicted the price of base metals would rise slightly again in 2025.
Is there content that you would like AFP to fact-check? Get in touch.
Contact us
