Businesses Begin Raising Prices After Diesel Subsidy Removed
Meanwhile, the Deputy Domestic Trade and Cost of Living Minister said businesses should not exploit the diesel price hike by raising prices of their services indiscriminately.
By Sadho Ram — 11 Jun 2024, 04:01 PM — Updated 6 months ago
Some private companies in Pahang and Kelantan have raised their prices after the government's subsidy rationalisation exercise that saw the price of diesel hiked by almost 50% starting yesterday, 10 June
According to FMT, at least two concrete producers, DPG Readymix Sdn Bhd and LCS Marketing Sdn Bhd, have confirmed that they have raised their prices following the removal of diesel subsidies.
A spokesperson for the Kelantan-based DPG Readymix said that the decision to raise the prices of its services was taken after it was informed that it was not eligible for the fleet card for diesel subsidies.
The other company, LCS Marketing, also confirmed that it has raised its prices due to the diesel hike.
According to the Pahang-based LCS Marketing, its concrete prices have increased by RM12 per cubic metre within a 30km distance. Additionally, for distances exceeding 30km, extra charges will apply.
A towing company and a hardware store have also raised their prices
FMT reported that Johor Bahru-based towing company Hong Guan Towing Service and Kuala Lumpur-based hardware store Chuan Soon Heng Sdn Bhd have also raised prices due to the diesel price hike.
Reacting to the businesses raising prices, Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh warned against profiteering
According to her, the ministry will take action if companies are caught raising the prices of their services indiscriminately.
"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," she said while confirming that towing firms and concrete producers are ineligible for diesel subsidies.
She, however, said that tow trucks or mixer trucks using prime mover truck heads are eligible for subsidies.
Meanwhile, Fuziah said she has received a barrage of complaints following the announcement of the targeted subsidy programme
"I understand that many are concerned about parties taking advantage by raising prices," she wrote in a Facebook post today, adding that her ministry has opened an official platform to address the complaints.
"If you find any issues of unreasonable price hikes or misconduct by any parties, immediately report them to the ministry. God willing, action will be taken within 24 hours for further processing. I am working to ensure that all complaints and reports will be directed to the appropriate authorities," read her post.
