Indonesian Political, Business & Finance News

Brace Yourselves, Fried Noodle Prices Could Rise Due to Increasing Fuel and Plastic Costs

| Source: VIVA Translated from Indonesian | Economy
Brace Yourselves, Fried Noodle Prices Could Rise Due to Increasing Fuel and Plastic Costs
Image: VIVA

Jakarta – The price of favourite foods such as fried noodles is poised to rise, in line with surging production costs due to the unrelenting global energy crisis. The ongoing conflict between Iran and Israel, as well as the United States, continues to pressure fuel prices, logistics, and food packaging costs for businesses.

In Malaysia, producers of yellow noodles are feeling the greatest impact from the increase in plastic packaging prices derived from crude oil, as well as the sharp rise in diesel costs for distribution and production.

Tensions between Iran and the United States in the Strait of Hormuz are prolonging the global energy crisis. That route is one of the world’s main oil distribution paths. Instability in the region has caused shipping costs, ship insurance, and raw material supplies to skyrocket.

Chaang Tuck Cheong, President of the Malaysian Bakery, Biscuit, Confectionery, Mee and Kuey Teow Merchants Association, stated that plastic packaging costs for noodles have risen by nearly 30 per cent since the conflict has been ongoing for more than a month.

The main material for that packaging is polyethylene terephthalate (PET), a substance produced from crude oil processing. Meanwhile, around 38 per cent of Malaysia’s crude oil supply is imported via the Strait of Hormuz.

In addition to being more expensive, packaging supplies are also arriving much more slowly due to a surge in demand. “Previously, we could get packaging within three weeks of purchase, but now some noodle producers have to wait at least six weeks,” he said, as quoted from Malay Mail, Tuesday, 21 April 2026.

“Some suppliers have also shortened our payment terms, from two months previously to just one month, creating serious cash flow pressure,” he explained.

This situation forces producers to work extra hard to maintain production continuity while withstanding mounting cost pressures. Chaang explained that diesel costs account for nearly a third of total noodle production costs. Therefore, the rise in diesel prices is severely hitting this industry.

Diesel prices in Peninsular Malaysia surged from RM3.12 per litre on 11 March to a record RM6.72 per litre on 9 April. Although it dropped 75 sen to RM5.97 per litre last week, the figure is still much higher than before.

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