Its minister, Armizan Mohd Ali, said they will now investigate companies which cite their inability to purchase subsidised diesel for increasing their rates.

“This includes looking into the possibility that these firms had secured subsidised diesel illegally,” he said in a statement.

Earlier today, FMT reported that concrete producers had raised their prices following the hike in the price of diesel.

At least two concrete producers – DPG Readymix Sdn Bhd and LCS Marketing Sdn Bhd – confirmed with FMT that they had raised their prices following the implementation of the targeted diesel subsidies.

Yesterday, it was reported that Persatuan Kontraktor Melayu Malaysia warned that the diesel subsidy rationalisation would result in price increases for consumer and construction products.

The price of diesel in Peninsular Malaysia is set at RM3.35 per litre from Monday. The price will be reviewed every week.

In Sabah, Sarawak and Labuan, diesel remains at a subsidised rate of RM2.15 per litre.

However, under the Budi Madani programme, private diesel vehicle owners, small-scale farmers and smallholders receive RM200 in monthly cash aid.