JOHOR BARU: Construction companies are reminded not to exploit the recent subsidised diesel rationalisation as justification to increase material and services prices.
Communications Minister Fahmi Fadzil said the sector was not entitled to subsidised diesel from the start, and for them to increase prices was unjustified.
He said if the industry increased prices now, it must have been using subsidised diesel in the past and as such was considered stealing.
"There are numerous notices issued by companies claiming that construction materials and services will be increased due to the spike in diesel prices."
Fahmi said the malpractice not only strains public resources but also undermines the integrity of subsidy programmes designed to support sectors like agriculture, fishing, and public transportation.
"Complaints received by the Malaysian Communications and Multimedia Commission (MCMC) will be channelled to the Domestic Trade and Cost of Living Ministry, for further action," he told reporters after a dialogue with the Pulai parliamentary Madani Community, here.
Fahmi said some two billion litres of subsidised diesel were misused by the construction and service sectors last year.
"These sectors are not eligible for subsidised diesel. They are required to purchase diesel directly from fuel station operators at industrial or commercial rates.
"However, the construction sector and certain service companies including tow truck companies had announced that their material and service prices will be increased."
Fahmi added that subsidy misuse and smuggling is a major concern, as some RM3.5 million worth of diesel, intended to support essential sectors through subsidies, had been misappropriated or smuggled last year.
The Road Transport Department's data revealed that the number of diesel-powered vehicles did not tally with the high consumption of subsidised diesel.
Fahmi reiterated that over two billion litres of subsidised diesel had been misused last year, due to smuggling activities or illegally acquired by ineligible parties.
He added that there were clear indications of illicit activities associated with subsidised diesel.
Prior to the diesel rationalisation, fuel stations, near border areas such as Wang Kelian in Kedah and Rantau Panjang in Kelantan, saw a surge in bulk diesel purchases.
However, these activities dramatically dropped once the new measures were in place.
"Previously there was a frenzy of subsidised diesel purchases at border fuel stations, but after the diesel rationalisation took effect, these stations suddenly became quiet," Fahmi said.