The Federation of Malaysian Consumers Association (Fomca) urged the government to closely monitor the prices of goods following the increase in petrol price effective today.

"We are not satisfied with the level of monitoring now, the government is aware of the impacts so it should take more actions," said Fomca director of communication Mohd Yusof Abdul Rahman.

"We hope the government will monitor the prices especially those of basic goods like rice and cooking oil so the consumers would not be burdened," he added when contacted.

He said invariably certain quarters will take advantage of the petrol hike and increase prices of other goods.

"Many business people will use the increase as a reason to put the cost upon consumers," he said, warning that this could lead to inflation.

"Prices of goods increase, but salaries have not increased and the cost of living becomes higher," he added.

Transportation cost

Mohd Yusuf suggested that the government should stop subsidising fuel price and instead use the money - running into billions of ringgit - to upgrade and improve the existing public transport.

Meanwhile, Malaysian Lorry Business Association vice-president Jian Zhuang Liang said transportation cost is bound to increase due to the petrol hike.

"We couldn't afford to bear the cost, we really have no other choice," he was reported as saying in Nanyang Siang Pau .

"If we use 140 liters of petrol from Ipoh to Kuala Lumpur with the new price, the transportation cost will increase by RM7,"he said.

Malaysian School Bus Drivers Association president Shi Ya Zhi said school bus fares would increase about 20 percent or between RM6 to RM8.

Yesterday, the government announced that the price of petrol, diesel and gas will increase by five cents per litre beginning today.

Petrol will now cost RM1.42 per litre for premium grade (RON97) and RM1.38 for regular grade (RON92) at our gas stations.

For Sabah and Sarawak, the price of RON97 is RM1.40 and RM1.41 respectively, while RON92 is the same as Peninsular Malaysia's.

Petrol prices last went up four months ago - on May 1 - rising 2 sen per litre. The double hike is due to the record high world oil prices reached this year, currently at about US$47.47 per barrel.