Ineligible sectors warned against taking advantage of diesel price adjustments to increase prices

JOHOR BAHRU (June 14): Sectors not eligible for diesel subsidies, including construction, have been warned against using recent fuel price revisions as an excuse to increase the prices of goods and services.

Communications Minister Fahmi Fadzil stressed that companies in the construction industry or other ineligible sectors citing the withdrawal of diesel subsidies as the reason for the increase are committing an offense because they were never entitled to these subsidies in the first place.

“There has been outrage in the construction industry, saying it has to increase the prices of cement and services because it no longer receives subsidies for diesel. But it turns out that they were not eligible for these subsidies from the beginning,” he said on Friday during the “Sembang Santai” program with the Madani community in Pulai parliamentary constituency.

The Ministry of Domestic Trade and Cost of Living has reportedly summoned 10 companies that announced price increases to justify their actions.

Pursuant to Art. 21 of the Price Control and Anti-Speculation Act (AKHAP) of 2011, notices were issued to three companies from the transport and construction industries, as well as four companies from the beverages and machinery rental industries.

Fahmi, who is also the spokesperson of the Unity government, revealed that about two billion liters of subsidized diesel were misappropriated and smuggled last year.

“If two billion liters were misappropriated, which amounts to RM3 billion to RM3.5 billion, it would be a huge sum that the government could use to build hospitals, water infrastructure and more. Instead, it was used for profit.

“With targeted diesel subsidies, we have managed to reduce this abuse without depriving the B40 group that really needs the subsidy,” he said.

Posted by Liza Shireen Koshy