KUALA LUMPUR: Consumer groups emphasised the importance of the Domestic Trade and Consumer Affairs Ministry monitoring businesses for potential price increases, following the diesel subsidy rationalisation.
They have also cautioned business owners against hiking prices, noting that they continue to receive government subsidies through fleet cards and the Budi Madani programme.
Federation of Malaysian Consumer Associations (Fomca) chief executive officer Saravanan Thambirajah said businesses were already eyeing price hikes after the subsidy removal.
He said any such hike would have a huge impact on the economy.
As such, he said, the ministry needs to play a crucial role in terms of keeping businesses in check.
"The ministry has full enforcement authority to inspect businesses and impose penalties. So, businesses should be checked before any price increases.
"The food and beverage sector would be significantly affected by subsidy removal, given the existing inflationary pressures and the cost of food, which is already high.
"However, there shouldn't be a big impact in terms of pricing for the industry and the government must make sure these groups comply with the regulation and enforcement," he told the New Straits Times.
Meanwhile, Kedah Consumer Association president Yusrizal Yusoff urged the ministry to take action under the Anti-Profiteering Act if retailers raise prices.
"Retailers should refrain from increasing prices since these subsidies are specifically targeted, and they continue to receive government support through fleet cards and the Budi Madani programme," he said.
Yusoff encouraged consumers to report any price hikes to the ministry, if they have any information that retailers are taking advantage of this announcement.
He said there was a need to monitor the situation in the coming weeks to gauge the impact of the floating diesel subsidy.
Yesterday, Finance Minister II Datuk Seri Amir Hamzah Azizan announced that the retail price of diesel at all pumps in Peninsular Malaysia would be at RM3.35 per litre, set at the market price based on the Automatic Pricing Mechanism formula today.
