Diesel subsidy: 10 firms called up for announcing price hike – minister

Ten companies which announced increasing their price of goods and services after the targeted diesel subsidy began on June 10 were called up to explain themselves.

Domestic Trade and Cost of Living Minister Armizan Mohd Ali said the initial investigation found that four companies that had approved fleet card applications, were issued notices for increasing prices of goods and services.

"The remaining six companies have vehicles which are not included in the list of Subsidised Diesel Control System (SKDS) 2.0," he said in a statement today.

Armizan said each company will be asked to provide detailed information including documents related to the offering of services or the sale of goods for the purpose of preparing profitability analysis.

"Failure to present oneself is in breach of Section 57 of Act 723," he said.

Armizan said the 10 companies involved had been given written notices issued under Section 21, Price Control and Anti-Profiteering Act 2011.

He also said the 10 companies comprised three each from the transport sector, building materials sector, as well as the food and beverage sector and two companies from the machinery rental sector.

He added that two companies were called yesterday and the rest will follow according to schedule.

‘Don’t take advantage’

Speaking about Ops Kesan 2.0 which was launched on June 8, he said it was to ensure that all determinants or price increases under SKDS 2.0 were in compliance with the Price Control and Antiprofiteering Regulations 2011.

Armizan said his ministry had warned all parties not to take advantage by raising the prices of goods and services for profiteering following the implementation of the targeted diesel subsidy scheme.

Any party found to be involved in price manipulation will be subject to action under Act 723 and may be fined up to RM500,000 for corporations or companies, and up to RM100,000 for individuals or imprisonment not exceeding three years or both.

- Bernama

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