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Prices of many essentials unchanged after diesel subsidy rationalisation

KUALA LUMPUR: Prices for many essential goods have remained unchanged since the rationalisation of diesel subsidies in Peninsular Malaysia two weeks ago.

Some goods like chicken and ikan merah have even seen a drop in prices, though the price of prawns has risen slightly in some areas.

However, traders say this has more to do with supply and demand, rather than diesel prices which remain subsidised for businesses transporting goods and providing public transport.

Checks by the New Straits Times at fresh markets, hypermarkets, sundry shops, coffeeshops and eateries across several locations in the Klang Valley found that most businesses have not raised prices.

Ummi Saffiyah Baharudin, 32, a butcher, said the prices of chicken and meat have been increasing steadily, with chicken priced at RM10 per kg and meat selling for RM32 per kg.

"Although the prices increase, on average, it is only up by RM0.30 or RM0.40.The last time we increased the price was at the end of May.

"It (the price) all depends on our suppliers, if they increase the price, we have to increase them as well, " the Chow Kit market trader said.

Seafood seller Amirul Hakim, 26, from Pasar Moden Seksyen 6, Shah Alam, said seafood prices are generally stable.

"But the prices of squid and prawns will depend on supply and demand, especially during the festive season.

"For example, today, only the price of squid has increased from RM30 to RM35, but this is not due to the rationalisation of diesel subsidy," he said.

Meanwhile, a grocery store owner, Raymond Goh, 58, said suppliers should not increase the prices of essentials as those in the transport sector still enjoyed subsidies.

"The government should take strict action if they still increase the prices after receiving aid," he said at Raymond store in Petaling Garden, Petaling Jaya.

Alif Rizal Mohamad, 35, a coffee stall owner in Seksyen 7, Shah Alam, who uses diesel for his vehicle said that he has kept his prices unchanged because he received a fleet card from the government.

"Although I use diesel for transporting all the goods for sale, I received this fleet card which enables me to absorb the increases in diesel prices.

"So far, I haven't felt much impact because the amount provided by the government is sufficient and the prices of coffee-making ingredients have also remained stable," he said.

Yesterday, Deputy Domestic Trade and Consumer Affairs Minister Fuziah Salleh told the Dewan Rakyat that the prices of goods remained under control despite the rationalisation of subsidies.

Fuziah said as of June 23, inspections were carried out at 2,790 premises and 210 notices were issued over initial price hikes.

She said some traders took advantage of the situation in the first few days but the issue has been addressed.

Last month, Anwar announced that diesel subsidies would be rationalised in Peninsular Malaysia.

To mitigate sudden increases in the prices of goods and services, the government will continue providing diesel subsidies to traders who utilise diesel-based commercial vehicles.

Cash aid would also be given to users of diesel vehicles who needed them.

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