Diesel prices rise by 80 sen for three consecutive weeks, MCA urges govt to be sensitive to public pressure

SHAH ALAM - The government has been urged to be more mindful of the pressure faced by the people following the recent diesel price hikes.

MCA president Datuk Seri Dr Wee Ka Siong said diesel prices were reported to have increased from RM3.92 to RM4.72 and then to RM5.52, with each hike occurring at the same rate of RM0.80.

He said the situation raises questions as to whether the increases are based on the Automatic Pricing Mechanism (APM) formula as previously announced.

"Each time it goes up by 80 sen, not more and not less. Is this really a coincidence or the result of calculations based on the APM formula announced earlier?

"If calculated according to the APM formula, it is unlikely the figure would be rounded exactly to 80 sen each time. Has the formula been changed or are there additional tax components that we are unaware of?

"The government needs to provide clarification," he said in a Facebook video on Thursday.

Wee said such sharp increases in diesel prices were inappropriate as they have a cascading impact on the economy and the public.

He added that rising fuel prices would increase operating costs across various sectors, including agriculture, fisheries and the use of machinery and logistics.

"This diesel issue creates pressure across multiple cost layers, which are ultimately borne by the people.

"When diesel prices rise, transportation costs go up, operational costs increase and eventually the prices of goods also rise. This is inflationary pressure," he said.

He further noted that traders were unable to absorb the full increase in costs, resulting in the burden being passed on to consumers.

"Once prices go up, it is not easy for them to come down again.

"Therefore, diesel price hikes should not be implemented abruptly," he added.

Wee also suggested that the government used the country’s financial strength to ease cost pressures on the public during periods of rising global prices.

"When global prices increase, we see neighbouring countries taking steps to protect their people from price shocks, rather than passing them directly on to consumers.

"Secondly, if diesel price adjustments are necessary, they should be carried out gradually and prudently.

"Increase them bit by bit so the market can adjust, businesses can plan and the people have room to breathe," he said.

He also urged the government to be more considerate when making decisions to avoid adding to the existing burden faced by the public.