Domestic Trade and Consumer Affairs (KPDNHEP) Minister Datuk Alexander Nanta Linggi has said that the retail price ceiling for petrol and diesel fuel has not been removed, contrary to widespread media reports yesterday, according to a report by Bernama.
“No..no..no. Don’t be misled. Don’t misunderstand it. We have not removed the so-called ceiling price, it is the same,” Nanta said in a press conference yesterday.
It was widely reported by local media yesterday that the price control order for petrol and diesel fuels has been removed, in response to a gazetted amendment order dated June 3, titled Price Control and Anti-Profiteering (Determination of Maximum Retail Price for Petrol and Diesel) (No. 8) (Revocation) Order 2020.
However, the ministry later published a press release to reassure the public that the maximum retail price of fuels in the country has not been changed. As before, the pricing of petrol and diesel fuel is based on the Automatic Pricing Mechanism (APM), influenced by the price of refined petroleum products in line with the global crude oil price.
Since 30th March 2017, the retail pricing of petrol and diesel fuels were set weekly and enforced by KPDNHEP through federal gazette under the order of the Price Control and Anti-Profiteering Act 2011. However, the ministry has since changed the mechanism of enforcement as of February 29 this year, through the Supply Control Instructions under the Supply Control Act.
As such, the weekly retail prices of petroleum fuel have not been published in the federal gazette since 21 February. The revocation order dated June 3 essentially revokes the out-of-date pricing.
“The changes in the mechanism were intended to improve the effectiveness of enforcement and monitoring by KPDNHEP in case there is any violation of the rule under the Act,” the press release read.
Nanta reassures that KPDNHEP is committed in ensuring prices set by oil companies and petrol stations are in compliance to those set by the Ministry of Finance, to protect the consumers rights, as well as welfare and well-being of the public.