KPDN summons 10 companies over price hikes following diesel subsidy changes

THE Domestic Trade and Cost of Living Ministry (KPDN) has summoned 10 companies for raising prices on goods and services following the implementation of targeted diesel subsidies on Monday (June 10).

KPDN Minister Datuk Armizan Mohd Ali announced that notices were issued to these companies under Section 21 of the Price Control and Anti-Profiteering Act 2011.

“Each company is required to provide detailed information, including documents related to the provision of their goods and services, for profiteering analysis. Failure to do so may result in penalties under Section 57 of the act,” he said in a statement.

The companies involved include three from the transportation sector, three from construction, two from food and beverage, and two engaged in machinery rental.

“Two companies were summoned yesterday (June 13), with the remainder to follow,” Armizan added.

Preliminary investigations revealed that four of the 10 companies had announced price hikes despite receiving approval for the fleet card under the second phase of the subsidised diesel control system (SKDS 2.0).

“The other six companies involved vehicles not included under SKDS 2.0 (for the fleet cards),” he noted.

Moreover, Armizan warned against exploiting the targeted diesel subsidies by profiteering. Companies found guilty of such practices could face fines of up to RM500,000, while individuals might face fines up to RM100,000, imprisonment for up to three years, or both.

On Tuesday (June 11), KPDN Deputy Minister Fuziah Salleh cautioned towing firms and concrete producers who are ineligible for diesel subsidies against significantly raising their prices.

Exceptions would be made for tow trucks or mixer trucks that use prime mover truck heads, she stated. – June 14, 2024


Main photo credit: Bernama

Subscribe and get top news delivered to your Inbox everyday for FREE