LETTERS: Certain quarters have expressed concerns about the impact of the fuel subsidy rationalisation that began on Monday, including possible profiteering among traders.
The move to rationalise fuel subsidies saw the retail price for diesel increase to RM3.35 per litre from RM2.15 previously.
There is serious concern that the move could trigger price hikes in goods and services in the country.
We must also not forget about the recent increase in civil servants' salaries, which will be implemented in December. It might also be an excuse by traders to profiteer.
Nevertheless, the authorities should make it clear that there is strong legislation to deal with profiteering.
The Domestic Trade and Cost of Living Ministry has enforced the Price Control and Anti-Profiteering (Mechanism for Determining Unreasonably High Profits) Regulations 2018 to take action against profiteers from June 6, 2018.
This regulation replaces the Price Control and Anti-Profitability (Mechanism for Determining Unreasonably High Profits for Goods) Regulations 2016, according to the ministry's website.
They are enforced all the time and do not have an expiration date. These rules ensure businesses do not make excessive profits on goods and services, as well as ensure rising prices of goods or charges for services are under control.
And for those found guilty of profiteering: "If convicted, for individuals, a fine of RM100,000 or three years in prison or both will be imposed for the first offence, while for the second and subsequent offences, a fine of RM250,000 or five years in prison or both, will be imposed.
"For organisations, the corporation or company will be fined RM500,000 for the first offence while a fine of RM1 million will be imposed for the second or subsequent offences."
DR MUZAFFAR SYAH MALLOW
Associate Professor
Faculty of Syariah & Law
Universiti Sains Islam Malaysia
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times