Running a refrigerated truck in Malaysia has always been more expensive than running a standard lorry. The cooling unit that keeps your cargo at temperature is effectively a second engine, burning diesel whether the truck is moving or sitting at a loading dock. With diesel now at RM3.35 per litre for subsidized users and RM5.52 or more for unsubsidized, that double fuel burden has become a serious challenge for cold chain operators.

The Double Fuel Problem

A standard 5-ton lorry might use 25-35 litres of diesel per day on typical routes. A refrigerated truck of the same size uses 40 to 60 litres per day because the refrigeration unit adds a substantial fuel demand on top of normal driving consumption.

Here is why:

The truck engine powers the vehicle itself - acceleration, cruising, and all the normal driving functions. This accounts for roughly 25-40 litres per day depending on route and load.

The refrigeration unit runs continuously to maintain cargo temperature. Whether you are transporting frozen seafood at -18 degrees Celsius or chilled produce at 2-4 degrees, the compressor draws fuel constantly. This adds 8 to 15 litres per day depending on the unit size, ambient temperature, and target cargo temperature.

Malaysia’s tropical climate makes this worse. When outside temperatures hit 35 degrees and you need to maintain -18 inside the box, the cooling unit works harder and burns more fuel than it would in a cooler climate.

Monthly Cost Reality for Reefer Operators

Using 50 litres per day as a reasonable average for a mid-size reefer truck running daily deliveries:

At RM3.35/litre (subsidized):

Daily: 50 x RM3.35 = RM167.50
Monthly (26 days): RM4,355

At the old RM2.15/litre:

Daily: 50 x RM2.15 = RM107.50
Monthly: RM2,795

Monthly increase: RM1,560 per truck

At RM5.52/litre (unsubsidized):

Daily: 50 x RM5.52 = RM210
Monthly: RM5,460

For a small cold chain operator running 3 refrigerated trucks, the subsidized rate means RM4,680 more per month in fuel. At unsubsidized rates, the additional cost climbs to RM7,995 per month compared to the old pricing.

These are not small numbers for businesses operating on the thin margins typical in food logistics.

Who Gets Hit Hardest

Frozen Food Distribution

Operators transporting frozen goods - seafood, processed meats, ice cream, frozen vegetables - face the highest cooling costs. Maintaining -18 to -25 degrees Celsius in Malaysian heat pushes refrigeration units to work near maximum capacity. These trucks tend toward the 55-60 litre per day consumption range.

The frozen food supply chain is also time-sensitive. Delays mean temperature excursions, and temperature excursions mean spoilage. You cannot simply slow down or optimize routes the same way a general cargo operator might.

Fresh Produce and Dairy

Chilled goods at 2-8 degrees Celsius require less cooling energy than frozen goods, but the deliveries are often more frequent with more stops. Each door opening introduces warm air that the unit must compensate for. A reefer truck doing 15 delivery stops per day uses more fuel than one making 3 long-distance runs, even at a higher temperature setpoint.

Dairy distributors and fresh produce carriers often operate on razor-thin margins negotiated with supermarket chains and food service companies. Absorbing an extra RM1,500 per truck per month is difficult when your per-delivery profit margin might be RM20-30.

Pharmaceutical Cold Chain

Pharmaceutical products often require strict temperature control within narrow bands. The cooling units must run with minimal temperature variation, which means consistent fuel consumption. Pharma logistics operators typically charge premium rates, but the margin benefit is offset by stringent compliance requirements and the cost of validated equipment.

The Pricing Squeeze

Here is the fundamental problem for cold chain operators: your customers expect food prices to stay competitive. When you approach a supermarket chain or restaurant group about increasing delivery rates, you are competing against other operators who may be absorbing costs temporarily or running on hope rather than sustainable margins.

The food supply chain in Malaysia is price-sensitive. End consumers notice when food prices go up, and retailers push back on suppliers, who push back on logistics operators. The diesel cost increase often lands on the operator who has the least negotiating power.

Some larger cold chain companies have fuel surcharge mechanisms built into their contracts. If you do not have this, consider negotiating fuel adjustment clauses for future contracts. This does not help with existing commitments, but it protects you going forward.

Practical Steps for Cold Chain Operators

Monitor Refrigeration Unit Efficiency

A well-maintained refrigeration unit uses less fuel than one with low refrigerant levels, dirty condenser coils, or worn door seals. Have your reefer units serviced according to the manufacturer’s schedule. Replacing worn door gaskets alone can reduce fuel consumption by preventing cold air leakage during deliveries.

Pre-Cool Smart

Loading a warm box and relying entirely on the reefer unit to bring it to temperature uses significantly more fuel than pre-cooling the box before loading. If your operation allows it, start the cooling unit 30-45 minutes before loading. This front-loads the fuel cost but reduces the total energy needed because the unit works less aggressively once loaded.

Route Planning for Temperature

Plan routes so that the most temperature-sensitive deliveries happen first when the box is coldest and most full. As you make deliveries and the box empties, the remaining cargo is still within acceptable temperature ranges even if the unit cycles less frequently.

Consider Your Fleet Age

Older refrigeration units are less efficient. A 12-year-old Thermo King or Carrier unit may still maintain temperature adequately but use 20-30% more fuel doing so compared to a newer unit. When diesel was RM2.15, the extra consumption was tolerable. At RM3.35 or RM5.52, the cost of running an inefficient unit starts to justify replacement.

How Financing Helps Manage the Situation

When you are already spending RM4,000 to RM5,000 per month per truck on diesel, depleting your cash reserves to buy or replace equipment is risky. Financing spreads the cost of acquiring or upgrading equipment over time, keeping your cash available for fuel, maintenance, wages, and other daily operating costs.

This is especially relevant for refrigerated trucks because you often need to finance both the vehicle and the cooling unit. These are expensive assets, and paying cash for them while diesel costs are elevated can put dangerous pressure on your working capital.

Ing Heng Credit has been financing equipment for Malaysian businesses since 1985. Over 40 years and more than 4,000 customers, we have worked with logistics operators across the cold chain. We are KPKT licensed and we finance used refrigerated trucks and cooling units because we know that practical, affordable equipment is what keeps cold chain businesses running.

The Road Ahead

Diesel prices are part of a structural policy change in Malaysia. Cold chain operators who build current fuel costs into their business models, maintain equipment efficiently, and use financial tools strategically will navigate this period better than those hoping for a return to RM2.15.

The food still needs to stay cold, and Malaysians still need fresh and frozen goods delivered reliably. That means cold chain operators remain essential. The challenge is making sure the economics still work.

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How Diesel Price Increases Affect Refrigerated Truck Operators in Malaysia 2026