Fuel price hikes shows government losing grip on energy crisis, says former minister

KOTA KINABALU (March 27): Beluran MP Ronald Kiandee has criticised the government’s handling of the energy crisis, following a sharp rise in diesel prices to RM5.52 per litre and a reduction of the subsidised RON95 quota to 200 litres per month within just 24 hours.

He said the government has yet to present a comprehensive National Contingency Plan, despite nearly a month of conflict in the Gulf region, describing its response as largely reactive.

“As a result, rakyat have become the victims. Food-related small and medium enterprises are now struggling to survive, express bus operators are facing the risk of closure, while restaurant owners report operating costs increasing by up to 30 per cent,” he said in a statement.

The former Minister of Agriculture and Food Security added that padi farmers are among the hardest hit, with ploughing and harvesting costs surging due to higher diesel prices.

“The burden is further compounded as they are forced to use additional diesel to pump water amid drought conditions. Worse still, farmers have not received the RM600 cash incentive for the past two planting seasons,” he said.

Kiandee noted that several areas scheduled to begin the new padi planting season in early March are already experiencing delays.

“This development is worrying and could drag the country into a food supply security problem, as previously raised by the Opposition leader,” he said.

He also rejected the Prime Minister’s claim that 90 per cent of the population remains unaffected.

“The claim that 90 per cent of the people are not affected is clearly detached from the realities on the ground,” he said.

He warned that the energy crisis is escalating and could evolve into a broader food supply crisis.

“Warnings from food producers that they ‘cannot hold on much longer’ and the uncertainty faced by padi farmers show that the crisis is deepening.

“The impact of rising diesel prices is already spreading across the supply chain and will ultimately be borne by the rakyat through higher prices,” said Kinadee.

He urged Putrajaya to consider proposals from the Opposition bloc, including the establishment of a National Economic Consultation and Intervention Council, tabling a comprehensive National Contingency Plan, and convening a special Parliament sitting to allow all parties to work together on solutions for the rakyat and the country.