After Malaysia scrapped the blanket diesel subsidy in June 2024, an old news story about the rising cost of steel in the country surfaced in social media posts, wrongly linking it to the rise in fuel prices. The article by Malaysian daily Utusan Malaysia was actually published in 2021, stating that steel prices were rising due to high demand.
The false claim was shared in a after on social media platform X on July 1, 2024, with a sarcastic Malay caption featuring a grinning emoji that read: “Diesel prices suddenly increased while no item has increased in price.”
The report included a screenshot from the Malay-language newspaper Utusan Malaysia with the headline: “Steel price rises from RM2,800 ($598) to RM4,000 per tonne.”
The claim came to light after Malaysia abolished a blanket subsidy on diesel to curb government spending and fuel smuggling to neighbouring countries by June 2024.
The move caused diesel prices to rise by 56 percent after the cuts came into effect in Peninsular Malaysia. The East Malaysian states of Sabah and Sarawak were exempted due to longer travel distances, further increasing the price for Malaysians. cost of living (archived link).
The same screenshot was also shared alongside similar false claims elsewhere on X hereand on Facebook here, here And here.
The article was actually published in October 2021, predating the diesel subsidy cut.
A combination of reverse image and keyword searches on Google found the article about Utusan Malaysia published on October 26, 2021 (archived link).
Below is a screenshot comparing the image in the fake message (left) with the original Utusan Malaysia report (right):
The 2021 report said construction projects in the northern state of Perak were delayed as steel prices nearly doubled due to high demand.
The price hike was also reported by the local online news portal Sound TV on October 27, 2021 (archived link).
Steel prices rose slightly by 0.7 percent to 3,730.46 ringgit per tonne from 3,702.88 Malaysian ringgit in April 2024, two months before the diesel subsidy was cut, according to state news agency Bernama. reported (archived link).
According to the World BankThe April rise “reflected positive sentiment about stronger demand amid concerns about supply disruptions of some key metals” (archived link).
The international financial institution further predicted that base metal prices would rise slightly again in 2025.
