Proton Iriz R3 Malaysian Touring Car 23

Despite the sharp decline in commodity prices since last year, prices of tyres and petroleum-related products have failed to come down, and the Kuala Lumpur Consumers Safety Association (PKP) is taking issue with it, according to the News Straits Times.

PKP president Samsudin Mohamad Fauzi said that industry players have been cheating consumers by hiking up prices of their products when petroleum became more expensive, but refusing to drop prices when production costs have reduced.

“The price of petroleum has dropped drastically from US$150 (RM652) per barrel previously to US$42 (RM183) per barrel currently. That is a very significant drop, but yet we see tyre prices and petroleum related products failing to drop in prices. There is no excuse and I hope those in the industry do not use the drop in value of the ringgit to justify their prices because it is not valid either,” said Samsudin.

He added that prices of components used in making tyres, such as rubber, steel, synthetic rubber and petroleum have all been reduced in the past 12 months, and that industry players cannot justify maintaining the prices of their products.

tyre wm

Additionally, Samsudin said that while the manufacturers have pledged to support the government’s review prices to go with the reduction of commodity prices, the cost of tyres and other products hasn’t followed a similar drop in fuel prices.

“They have only raised the prices when the cost was high. But when the cost has gone down, their prices are not brought down. This is why I reiterate that they are cheating the consumers,” he said.

Samsuddin said that the PKP will be pursuing the matter – this includes preparing a memorandum that will be sent to the Ministry of Domestic Trade, Co-operatives and Consumerism, as well as the related associations of manufacturers and importers. “This is because we believe and have done studies that show, if we want to reduce the cost of living and burden on the people, this is part of what needs to be done. The cost of transportation needs to be reduced first.”