The hike in fuel pump prices will only push food prices us by 0.1 percent, Domestic Trade, Cooperatives and Consumerism Minister Hasan Malek said.

According to the New Straits Times , this was showed in studies done by the ministry on its impact on food production.

"We have done our best to ensure that any move to reduce subsidies would not unfairly burden traders. As such, we see no reason for them to mark up food prices as a result of the rise in fuel costs," he was quoted as saying.

NONE He added that his ministry's enforcement officers have been deployed nationwide to monitor food prices to ensure traders do not take advantage of the subsidy cuts to raise prices.

Hasan ( left ) further said that the cutting of subsidies would eventually help consumers as it would be channeled into other welfare programmes.

In announcing the subsidy cut yesterday, Prime Minister Najib Abdul Razak said the impact of the fuel pump price hike will be cushioned by higher Bantuan Rakyat 1Malaysia.

However, he did not reveal how much the BR1M will be increased to.

In its election manifesto, the BN had said that it will gradually raise BR1M from RM500 to RM1200 for eligible Malaysians if it was returned to power in the recent 13th general election.

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