Minister hopes prices of goods will decrease in line with fuel rates

The government is seeking cooperation from all parties especially business operators so that the decrease in petrol price can be translated into lower prices of goods.

Domestic Trade and Consumer Affairs Minister Saifuddin Nasution, in saying this, said the decrease of fuel price is usually followed by lower inflation rate.

"The pattern is clear. But, whether inflation index would really go down (following decrease in fuel price)… we are hoping to get the support of businesses and consumers," he told reporters after handing over service excellency awards to 307 civil servants at the ministry's headquarters in Putrajaya today.

Saifuddin added that the decrease in fuel prices would principally lower the cost in manufacturing goods, and thus it should be followed by decrease in prices of certain items for consumers.

He said that besides the ministry being responsible to control policies and enforce the law, lowering cost of living also depends on business operators to be responsible in practicing good business ethics.

"Lessening cost of living can only be achieved if it is supported by business operators who follow and practice good business ethics, besides consumers playing their role," he said.

Effective on the midnight of Jan 5, the price of RON95 petrol was decreased by 27 sen from RM2.20 per litre to RM1.93 per litre. 

The retail price of RON97 petrol meanwhile was down from RM2.50 per litre to RM2.23, while diesel went from RM2.18 to RM2.04 per litre, in a move that kicked off the weekly managed float pricing system.

Finance Minister Lim Guan Eng had said that the federal government was committed to ensuring that consumers pay less at the pump if global oil prices are down, but would cap RON95 petrol at RM2.20 per litre and diesel at RM2.18 per litre, should oil prices go up.

KFC says manufacturing cost had increased

On another matter, Saifuddin said the ministry had a meeting with QSR Brands (M) Holding Bhd (QSR Brands) over the price hike on some items on KFC menu, which had recently went viral on social media.

During the meeting on Friday, among issues that was raised by the company was the increase of their cost in manufacturing.

"KFC is also bound by their international franchise license, where there are several conditions they have to meet, like the ingredients in their recipe.

"In their agreement, they (QSR Brands) are required to purchase raw materials from listed suppliers although when there are other supplies that offer the items in much lower prices.

"That is purportedly to maintain their products' taste, spices and sorts. That was their excuse," he said.

Saifuddin said although they had the meeting, QSR Brands is still required to submit a written explanation on the price hike

He added that a similar meeting with McDonald's company management would also be held today. - Mkini