Businesses told not to raise prices indiscriminately over diesel price hike

Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh said while towing firms and concrete producers are ineligible for diesel subsidies, they should not exploit the current situation by raising prices.

She warned that her ministry would take quick action against those who do so.

“They must be careful when raising their prices. If they aren’t, they might be considered to be profiteering. And the ministry will not hesitate to take action under the Price Control and Anti-Profiteering Act.

“For now, we are only giving diesel subsidies to lorries and trucks that transport basic necessities,” she said, according to Free Malaysia Today.

Fuziah clarified that those eligible for the diesel subsidies include tow trucks or mixer trucks that use prime mover truck heads.

It was earlier reported that some tow truck companies and concrete producers had raised their prices by as high as 25 percent following the increase in the price of diesel to RM3.35 per litre from RM2.15.

The administration of Prime Minister Anwar Ibrahim plans to make fuel subsidies targeted, starting with diesel, with plans to remove blanket subsidies for RON95 next.

The costs are intended to be offset by monthly cash transfers. For diesel users, the monthly rebate is RM200.

Ex-premier Muhyiddin Yassin has warned that for those eligible for assistance, RM200 per month would not be sufficient to cover the significant increase in diesel prices.

“Ultimately, the cost increase in the supply chain will still occur and be fully borne by consumers,” he claimed, predicting that this will only worsen when blanket RON95 subsidies are also removed.

Finance Minister II Amir Hamzah on Monday said that data indicated the RM200 payout for private diesel users would be sufficient for 80 percent of recipients.

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