The Ministry of Domestic Trade and Cost of Living (KPDN) has issued Written Notices (WN) to 10 companies that announced price increases for goods and services following the diesel subsidy targeting, which commenced on June 10, 2024.
The notices were issued under Section 21 of the Price Control and Anti-Profiteering Act (AKHAP) 2011.
These identified companies will be required to justify their decision to raise the prices of goods and services.
The 10 companies comprise three from the transportation sector, three from the construction materials sector, two from the food and beverage sector, and two from the machinery rental sector.
Two companies were summoned on June 13, 2024, with the remaining companies to follow as per schedule.
Minister of Domestic Trade and Cost of Living, Datuk Armizan Mohd Ali said, “Initial investigations revealed that four of the companies that had been approved for the fleet card scheme have issued notices of price hikes. The other six companies have vehicles not included in the Subsidiary Diesel Control Scheme (SKDS) 2.0 list.
Each company is required to provide detailed information, including relevant documents on service offerings or product sales, to conduct a profiteering analysis. Failure to comply may result in penalties under Section 57 of Act 723.”
KPDN launched OPS KESAN 2.0 on June 8, 2024, to ensure that all price and charge determinations or increases in the service sector, approved under the SKDS 2.0 diesel subsidy, whether for eligible or ineligible vehicles, comply with the Price Control and Anti-Profiteering Regulations 2011 (Mechanism for Determining Unreasonably High Profits) 2018 and do not engage in profiteering under AKHAP 2011.
Armizan added, “The Ministry warns all parties against taking advantage of the diesel subsidy targeting by unjustifiably raising prices of goods and services.”
He said, “Any party found to be manipulating prices will face stringent action under applicable laws, particularly under Act 723, with fines up to RM500,000 for corporations/companies and up to RM100,000 or imprisonment for a term not exceeding three years, or both, for individuals.
