Rising diesel prices have begun to significantly impact operational costs in Penang, prompting the Penang United Hokkien Cemeteries Association to announce an increase in cremation fees.
Effective from the 7th of this month (Monday), the cost per cremation will increase from RM600 to RM700.
According to the chairman of the cemetery’s board of directors, the decision was made due to a sharp and sustained surge in diesel prices. The Batu Gantung United Hokkien Cemetery handles an average of 260 cremations each month and consumes approximately 8,700 litres of diesel monthly.
He explained that diesel prices were relatively manageable last year, averaging RM2.80 per litre. However, by March this year, prices had doubled to RM5.60 per litre, before rising further to RM6.02 per litre between April 2 and April 8. This drastic increase has made it increasingly difficult for the cemetery to sustain its operations without adjusting its fees.
The crematorium also bears considerable social responsibilities
According to a China Press report, the decision to increase charges was finalised during a board meeting held on the 27th of last month. Notices regarding the new rates were subsequently issued on 1 April to funeral service providers across Penang Island to ensure they were informed of the changes.
In addition to serving the general public, the chairman explained that the crematorium has a social obligation to assist hospitals and elderly care homes with the cremation of unclaimed bodies or individuals from underprivileged backgrounds. These costs are often borne entirely by the cemetery. On average, around four such cases are handled each month.
Currently, the crematorium operates 10 furnaces and is facing rising costs not only for diesel but also for electricity, furnace maintenance, and staff salaries.
The previous cremation fee of RM600 had remained unchanged for the past five years, making the recent adjustment unavoidable amid escalating operational costs.
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