Why is the cost of living more sensitive to diesel price changes than petrol?

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Diesel price changes affect the cost of living more than petrol because diesel powers most physical goods, so higher diesel costs spread through the entire economy.
When diesel prices rise, the cost is carried by lorries and other diesel-powered transport used to move food ingredients, construction materials, factory machinery, and even workers via buses. Lorry drivers must pay the higher diesel cost and pass it on to the goods they deliver, so within weeks inflation can reach wallets from many directions. Petrol price rises, by contrast, mainly show up as higher commute costs for people using family cars, where responses like driving less or carpooling can reduce the immediate impact.
Diesel is embedded in the delivery of goods people buy every day
Diesel is described as the “bloodline” behind the goods Malaysians consume and use, including roti canai ingredients such as flour, cooking oil, and eggs, along with items like cili boh. It is also linked to construction materials, factory machinery, cargo ships, and buses that transport workers. Because these everyday goods rely heavily on diesel-powered logistics, diesel costs feed into the prices of many products at once.
Diesel cost increases spread through pricing chains, not just personal spending
The mechanism described is straightforward: lorry drivers have to pay higher diesel prices and then pass those higher costs to vegetables, cement, and electronics they deliver. That means the impact is not limited to one group of consumers or one type of trip. Instead, higher diesel costs accumulate across transport and supply chains, pushing up prices across the market.
Economists view diesel shocks as broader and more dangerous than petrol shocks
Economists in the discussion consider diesel price shocks more dangerous than petrol price shocks because diesel affects the entire cost of living, not only personal transportation. Petrol increases are framed as a “headache” that mainly affects commuting, while diesel increases are framed as a “heart attack” for the economy because they affect a wider set of essentials beyond transport. The contrast is that petrol changes are more local to daily travel, whereas diesel changes touch the cost of goods people buy.
Petrol affects commute costs, while diesel affects the prices of physical goods
The comparison is explicit: petrol price increases primarily affect commute costs, while diesel price increases affect the cost of all physical goods. With petrol, the immediate pain is at the pump for those driving, and people can adjust behaviour such as driving less or carpooling. With diesel, the higher cost is tied to moving goods and services that are then priced into everyday items, so the cost-of-living impact is broader.

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Why is the cost of living more sensitive to diesel price changes than petrol?

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