KUALA LUMPUR: The 10 firms summoned by the Domestic Trade and Consumer Affairs Ministry following the recent diesel subsidy rationalisation have been given four working days to provide justification for their decision to increase the prices of their services.

Its deputy minister, Fuziah Salleh, said the notices were issued by the Domestic Trade and Consumer Affairs department in their respective states.

She said the deadline for the companies to respond varies according to the date they received the notices.

"Investigations are still ongoing. To prove profiteering, extensive data spanning up to two years is required.

"The company must provide the ministry with information regarding production costs, including raw materials, operating, labor costs, energy and transportation costs.

"The data for the entire supply chain must be provided to the ministry," she told the New Straits Times today.

Fuziah added that if the ministry identifies elements of profiteering in its investigations, legal action will be taken.

Yesterday, the ministry summoned 10 companies for imposing price hikes on goods and services following the implementation of targeted diesel subsidies on Monday.

Its minister, Armizan Mohd Ali, said that notices were issued to these firms under Section 21 of the Price Control and Anti-Profiteering Act 2011.

The companies span various sectors, including three from transportation, three from construction materials, two from food and beverage, and two from machinery rental.

On June 8, the ministry launched Ops Kesan 2.0, to ensure compliance with regulations related to price determination and increases in the service sector under SKDS 2.0.

The operation aims to ensure that both eligible and non-eligible vehicles adhere to the Price Control and Anti-Profiteering Regulations 2011 (Mechanism to Determine Unreasonably High Profits) 2018 and avoid engaging in profiteering activities under Price Control and Anti-Profiteering Act 2011.

He said that any party found manipulating prices would face severe action under current legal provisions, with fines of up to RM500,000 for corporations and up to RM100,000 for individuals, or imprisonment for up to three years, or both.

https://www.nst.com.my/news/nation/2024/06/1063969/domestic-trade-and-cost-living-ministry-gives-10-firms-four-days-explain