JOHOR BARU, June 14 — Sectors not eligible for diesel subsidies, including the construction sector, have been warned against using the recent fuel price adjustments as a pretext for raising prices of goods and services.

Communications Minister Fahmi Fadzil emphasised that companies in the construction or other ineligible sectors citing the withdrawal of diesel subsidies as a reason to hike prices is committing an offence, as they were never entitled to these subsidies in the first place.

"There has been an outcry from the construction sector claiming they need to increase the prices of cement and services because they no longer receive diesel subsidies. However, it turns out they were never eligible for these subsidies to begin with,” he said during the "Sembang Santai” programme with the Madani community in the Pulai parliamentary constituency today.

The Domestic Trade and Cost of Living Ministry (KPDN) has reportedly summoned 10 companies that announced price hikes to justify their actions.

Notices have been issued under Section 21 of the Price Control and Anti-Profiteering Act (AKHAP) 2011 to three companies in the transportation and construction sectors, as well as four companies from the beverage and machinery rental sectors.

Fahmi, who is also the spokesperson for the unity government, revealed that last year, an estimated two billion litres of subsidised diesel were misappropriated and smuggled.

"If two billion litres were misappropriated, amounting to around RM3 billion to RM3.5 billion, that’s an enormous sum that could have been used by the government to build hospitals, water infrastructure and more. Instead, it was exploited for profit.

"With targeted diesel subsidy, we have managed to curb this misuse without denying the B40 group, who genuinely need the subsidies,” he said. — Bernama