Deputy Domestic Trade and Consumer Affairs Minister S Veerasingham said the fuel price hike effective from today should not have any significant effect on the prices of goods and his ministry will ensure traders do not increase the prices.

He told reporters in Petaling Jaya this morning that even if the increase of two sen in the prices of petrol and diesel have effect on goods, "it should be absorbed by the business".

"If traders are losing money from the increase, then they should tell us. The ministry will evaluate their request and see if the hike in prices of their goods is fair. Even if there is an increase in prices of goods, we feel that it should be compensated from their profits," he said in a Bernama report.

The deputy minister added that if traders were to increase the prices of goods just because the government allowed prices of fuel to go up, it would lead to national inflation.

"We advise traders to put the interest of the country and its people first before thinking about increasing prices. We will monitor the situation closely," he said, adding that the ministry would take legal action against traders who increase prices of goods citing the fuel price hike.

Veerasingham also assured that essential goods controlled by the government would not see a price hike.

Rise in world price

Yesterday, the government announced the decision to increase the retail price for petrol and diesel by two sen per litre while Liquefied Petroleum Gas (LPG) increases two sen per kilo effective from today.

The decision was due to the rise in the world price of crude oil from RM94.12 per barrel to (US$24.77 per barrel) to RM126.27 per barrel (US$33.23), Domestic Trade and Consumer Affairs Minister Mohd Shafie Apdal explained.

Commenting on it, Prime Minister Abdullah Ahmad Badawi said he believed that consumers will not feel the pinch as a result of the increase.