10 companies called up to explain price hikes
Published on: Saturday, June 15, 2024
Armizan said KPDN 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 by the Government. - pix Bernama
PUTRAJAYA: Ten companies which announced increasing their price of goods and services after the targeted diesel subsidy began June 10 were called up to explain the justification of their action.
Minister of Domestic Trade and Cost of Living Datuk Armizan Mohd Ali said the initial investigation found that four companies that had approved fleet card applications, were issued notices for increasing prices of goods and services.
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“The remaining six companies have vehicles which are not included in the list of Subsidised Diesel Control System (SKDS) 2.0,” he said in a statement, Friday.
Armizan said each company 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 also be penalised under Section 57 of Act 723,” he said.
Armizan said the 10 companies involved had been given written notices issued under Section 21, Price Control and Anti-Profiteering Act (AKHAP) 2011.
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He said the 10 companies comprised three each from the transport sector, the building materials sector, as well as the food and beverage sector, and two companies from the machinery rental sector.
Armizan said two companies were called on Thursday and the rest will follow according to schedule. The Ministry of Domestic Trade and Cost of Living (KPDN) launched Ops Kesan 2.0 on June 8.
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The purpose is to ensure that all determinants or price increases under SKDS 2.0 were in compliance with the Price Control and Anti-profiteering Regulations 2011
Armizan said KPDN 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 by the Government.
Any party found to be taking advantage of price manipulation will be subject to strict action under Act 723 and may be fined up to RM500,000 for corporations or companies, and up to RM100,000 for individuals or imprisonment not exceeding three years, or both.
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