0.1% food price hike? STOP LYING, BN told

There is no way that food prices will only increase by a mere 0.1 percent following the 10.5 percent hike in fuel prices as claimed by Domestic Trade, Co-operatives and Consumerism minister Hasan Malek, says PAS today.

Hasan also reportedly said that his ministry “sees no reason” for traders to mark up food prices as a result of the rise in fuel costs and pledged to take action against businesses that raise prices of goods and services unnecessarily.

“These statements are very misleading and fraudulent,” said PAS information chief Tuan Ibrahim Tuan Man responding to Hasan’s statement.

He added that PAS finds the government’s call on businesses not to raise prices as baffling following government's decision to hike fuel prices that saw RON95 and diesel up by 20 sen to RM2.10 and RM2.00 a litre respectively starting yesterday.

“If the government does not want businessmen to raise goods prices, then it is better for the government not to increase the fuel prices because the spike in cost will be borne by people in the end,” said the Pahang PAS commissioner.

On the food price, Tuan Ibrahim reminded Hasan not to repeat the government’s Performance Management & Delivery Unit (PEMANDU)’s blunder in 2010.

Tuan Ibrahim recalled how PEMANDU had issued the “Subsidy Rationalisation Factsheet1” then, claiming a cup of “teh tarik” and “kopi susu” priced at RM1.20 would only see an increase of 0.8 sen to approximately RM1.21 under its subsidy rationalisation program that resulted in higher prices for five basic necessities - namely diesel, RON95, RON97, sugar and liquified petroleum gas (LPG).

At that year, RON95 and LPG saw an increase of 5 sen to RM1.90. Sugar price was increased 20 sen to RM2.10 a kilogram while diesel was sold at RM1.80.

“Now, the Domestic Trade, Co-operatives and Consumerism ministry said that food prices will only increase by 0.1 percent.

If “teh tarik” is priced at RM1.20, will the new price become RM1.2012? How can the traders impose that price?” questioned Tuan Ibrahim.

Even at the minimum of 5 sen, the smallest denominator in Ringgit currency today, Tuan Ibrahim said the “teh tarik” would see an increase of 4.15 percent.

“As such, PAS urges BN government to stop lying to the people,” he said.

The rise in fuel cost like RON95 and diesel, said Tuan Ibrahim, would lead to higher transportation cost that would be passed to the consumers in the end.

“And for sure the rate will be more than 0.1 percent that was ’proven’ by the ministry,” he warned.

Tuan Ibrahim’s concerns were proven valid. Yesterday, Malaysiakini had reported that Container haulier Taipanco Sdn Bhd would be raising its cargo fuel surcharge from 16.19 percent to 18.2 percent following the hike in fuel prices.

Malaysian Bus Operators meanwhile demanded adjustment in fares saying the fuel price increase has put the bus transportation businesses in jeopardy.

- harakahdaily.net