Targeted diesel subsidy – KPDN calls up 10 companies for increasing prices under the Anti-Profiteering Act

Not many of us drive diesel-powered vehicles, certainly not as many who use RON 95. But what everyone fears is the increase of prices for daily goods and services, using the just-announced removal of blanket subsidy for diesel as an excuse. We’ve all seen it before, traders raising prices and – rightly or wrongly – pushing the blame to the government.

So, it’s a good thing that the ministry of domestic trade and cost of living (KPDN) is actively looking for those suspected of profiteering. Ten companies that announced price increases after the targeted diesel subsidy programme started on June 10 have been issued written notices under Section 21, Price Control and Anti-Profiteering Act (AKHAP) 2011.

KPDN minister Datuk Armizan Mohd Ali said today that initial investigations found that four of the companies hauled up had approved fleet card applications, which means that their vehicles would be still enjoying subsidised diesel. The other six companies have vehicles that are not included in the list of Subsidised Diesel Control System (SKDS) 2.0.

Armizan explained that the companies 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 profitability analysis. Failure to present oneself will be penalised under Section 57 of Act 723.

Who are they? The minister said the 10 companies comprised three each from the transport sector, building materials sector and the food and beverage sector. Two companies are from the machinery rental sector.

KPDN launched Ops Kesan 2.0 on June 8 with the aim to ensure that all determinants or price increases under SKDS 2.0 were in compliance with the Price Control and Antiprofiteering Regulations 2011.

The ministry has warned all parties not to take advantage by raising the prices of goods and services with a profit-making element following the implementation of the targeted diesel subsidy. Any party found to be engaging in price manipulation will be subject to action under Act 723 and may be fined up to RM500,000 for corporations or companies, and up to RM100,000 for individuals, or jail not exceeding three years, or both.

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