It is not justifiable to link diesel subsidy targeting with increased cost of living

KUALA LUMPUR: The Ministry of Domestic Trade and Cost of Living (KPDN) asserts that it is not justifiable to claim that targeting diesel subsidies is the main cause of the increase in the cost of living.

According to Berita Harian, Deputy Minister Fuziah Salleh stated that other factors also contribute to the rise in living costs.

For example, the significant increase in vegetable prices last June was due to unpredictable weather conditions, whereas the price of standard chicken remained stable at a reasonable level last month compared to July.

She also noted that KPDN recorded two sub-categories of goods experiencing price increases this month: meat and vegetables, with percentage increases ranging from 0.24 to 53.6 percent.

Based on a review of price data one month after the rationalization of diesel subsidies was implemented, KPDN found that the highest percentage increase was recorded for tomatoes at 53.6 percent and Kulai red chilies at 17.4 percent.

“There were also items that saw a decrease in price a month after the implementation of diesel subsidy rationalization, such as onions and chicken eggs.

“Therefore, it is not justifiable to attribute the increase in the cost of living solely to the targeting of diesel subsidies,” she said during the oral reply session in the Dewan Rakyat.

She was responding to a question from Datuk Rosol Wahid (PN-Hulu Terengganu) regarding the impact of diesel subsidy rationalization on the prices of goods and the increase in the cost of living, as well as the effects of increased sales and service tax (SST) rates and the rise in electricity and water tariffs.