JOHOR BAHRU, June 14 — Sectors ineligible for diesel subsidies, including the construction sector, have been warned against using the recent fuel price adjustments as a pretext for raising the prices of goods and services.
Communications Minister Fahmi Fadzil emphasised that companies in construction or other ineligible sectors, citing the withdrawal of diesel subsidies as a reason to hike prices, are committing an offence as they were never entitled to these subsidies in the first place.
“There has been an outcry from the construction sector claiming they need to increase the prices of cement and services because they no longer receive diesel subsidies. However, it turns out they were never eligible for these subsidies to begin with,” he said during the Sembang Santai programme in Pulai today.
The Domestic Trade and Cost of Living Ministry has to date issued summonses to 10 companies that announced price hikes after the subsidy rationalisation move.
Notices have been issued under Section 21 of the Price Control and Anti-Profiteering Act 2011 to three companies in the transport and construction sectors, as well as four companies in the beverage and machinery rental sectors.
Fahmi, who is also Unity Government spokesman, revealed that last year, an estimated two billion litres of subsidised diesel were misappropriated.
“If two billion litres were misappropriated, costing around RM3 billion to RM3.5 billion, that’s an enormous sum that could have been used by the government to build hospitals, water infrastructure and more. Instead, it was exploited for profit.
“With targeted diesel subsidies, we have managed to curb this misuse without denying the B40 group, who genuinely need the subsidies,” he said.
— Bernama
