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Wee: Prices of goods may spike while waiting for fleet cards

Publish date: Sun, 23 Jun 2024, 02:33 PM

MCA president Datuk Seri Dr Wee Ka Siong expressed concerns that uncertainties surrounding the delivery of fleet cards linked to the diesel subsidy rationalisation plan may cause a spike in the prices of goods.

“Everyone is concerned. Why not start the diesel rationalisation after everyone has obtained their fleet cards?” Wee is quoted as saying.

He highlighted that some business operators have received their letters but are still waiting for fleet cards, causing uncertainty in subsidy amounts and pricing strategies.

This uncertainty might lead operators to preemptively raise prices, which could be difficult to reverse.

He also disagreed with the views of some ministers who said that prices of building materials would not be affected, saying that the impacts of these price fluctuations extend beyond just diesel costs.

“It is crucial to acknowledge the widespread use of diesel among SME operators, ranging from generators, pumps, machinery, and other equipment. The subsidy rationalisation affects everyone,” he added.

The government is also under fire from the UMNO Youth whose leader Dr Akmal Saleh claimed that the current increase in the price of goods is due to the targeted diesel subsidies that went into force on June 10.

Akmal said the implementation of the policy is seen as a hasty decision.

“UMNO Youth take seriously the government’s move which is seen as hasty in implementing targeted subsidies by withdrawing bulk diesel subsidies that resulted in the floating of diesel prices based on current market prices.

“We support the subsidy targeting policy, but of course, it needs to be done in stages,” he said at a press conference after a UMNO Youth Exco Meeting at Menara PWTC, Kuala Lumpur. - June 23, 2024

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