Published on June 14th, 2024 | by Sounder Rajen


10 Companies Who Announced Increased Prices Dues To Diesel Subsidy Removal Questioned

These companies announced new prices after the Government changed diesel subsidies

It has been reported that ten companies that made the announcement to increase the price of goods and services after targeting the diesel subsidy starting 10 June 2024 were called to explain the justification of the action. For those unaware, the diesel subsidy in Malaysia has been changed to a targeted subsidy and people are not too happy about it. Let’s review.

Minister of Domestic Trade and Cost of Living Datuk Armizan Mohd Ali said that preliminary investigations found that fleet card applications by four of the companies were approved, but the companies still issued notices for the increase in goods and services. “The remaining six companies have vehicles that are not included in the list of the Subsidised Diesel Control Scheme (SKDS) 2.0.” he said in a statement.

Moreover, he also 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 a profit analysis. Well, we in Malaysia are used to this. After all, everytime the price of fuel goes up by 15 cents, the price of ‘kopi o panas’ at the kopitiam goes up by 50 cents.

“Failure to attend can be penalised under Section 57 of Act 723.” Armizan added. He also said that the 10 companies involved were given written notices issued under Section 21, Price Control and Anti-Profitability Act (AKHAP) 2011, and two companies were called yesterday, while the rest will follow.

On top of that, he said the companies consisted of the transport sector and the building materials sector, three companies each, as well as the food and beverage sector and the machinery rental sector, two companies each.

The Ministry of Domestic Trade and Cost of Living (KPDN) launched Ops Kesan 2.0 on 8 June 2024, Armizan said, KPDN warned all parties not to take advantage by raising the prices of goods and services with profit-making elements following the targeting of diesel subsidies implemented by the government.

What’s more, he said parties found to be taking advantage of price manipulation will be subject to strict action under Act 723 and may be fined up to RM500,000 for corporations or companies, while individuals may be fined up to RM100,000 or imprisoned for a period not exceeding three years or both.
We got all this from Metro and their full article is linked here. Thank you Metro for the information and images.

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