PN Urges Government to Clarify Diesel Pricing Mechanism Amid Rising Costs Concerns
KUALA LUMPUR, — Perikatan Nasional (PN) has called on the government to provide greater clarity on how diesel prices are determined, following a steady increase that is raising concerns over its broader economic impact.
PN secretary-general Datuk Seri Takiyuddin Hassan said the rapid rise in diesel prices, from RM5.52 to a projected RM6.02 per litre, could have far-reaching consequences across multiple sectors.
He noted that such increases are likely to drive up supply chain costs and place additional pressure on the cost of living.
“The pace of price adjustments is concerning and has direct implications for business operations and consumers,” he said in a statement.
Key Economic Sectors Feeling the Impact
Takiyuddin highlighted that industries such as logistics, transportation, agriculture, manufacturing, and retail are among those most affected.
He said businesses in these sectors have warned that rising input costs are becoming increasingly difficult to absorb.
Small and medium enterprises (SMEs), in particular, may be forced to pass on higher costs to consumers, potentially fuelling cost-push inflation.
“SMEs operating on thin margins will struggle to cope without adjusting prices,” he said.
Concerns Over Potential Electricity Tariff Increases
He also raised concerns about the possible ripple effect on electricity tariffs, which are linked to fuel cost adjustments.
Takiyuddin warned that higher energy costs could further strain businesses and slow economic growth if left unaddressed.
“This is not just about diesel prices, but the overall cost structure of the economy,” he said.
Call for Transparency and Price Projections
PN is urging the government to disclose detailed information on diesel price projections in the coming months.
Takiyuddin said it is important to clarify whether RM6.02 per litre represents a ceiling price or part of ongoing adjustments.
He also stressed the need for transparency in key pricing components, including exchange rates, base costs, margins, and fiscal elements.
“Transparency is essential to build public confidence and stabilise market sentiment,” he said.
Proposal for Temporary Energy Tax
To ease the burden on consumers, PN proposed introducing a temporary windfall or energy tax on oil and gas companies that are benefiting from high global energy prices.
Takiyuddin suggested that the revenue generated could be used to fund subsidies, tax relief, and targeted assistance.
“This would help cushion the impact on households and businesses,” he said.
Regional Price Disparity Raises Questions
He also pointed out the significant price gap between diesel prices in Peninsular Malaysia and those in Sabah and Sarawak, where prices remain lower.
Takiyuddin said the disparity has raised concerns about fairness and cost distribution across regions.
“This difference needs to be explained to avoid perceptions of inequality,” he said.
He further noted that Malaysia’s diesel prices risk becoming among the highest in the region, despite the country being an oil and gas producer.
Call for Price Stabilisation Mechanisms
PN also proposed the introduction of price stabilisation measures, such as a ceiling price or buffer mechanism, to prevent sharp fluctuations.
Takiyuddin said such measures are crucial to maintaining economic stability and protecting consumers.
“We need a system that offers predictability and safeguards the well-being of the people,” he said.
-wilayah.com.my
