THE government will not float the prices of chicken nor increase the electricity and water tariffs in the peninsula, said Prime Minister Ismail Sabri Yaakob.

His announcement marks a U-turn just days after Domestic Trade and Consumer Affairs Minister Alexander Nanta Linggi said chicken prices will be floated from July 1, following the end of chicken subsidies.

Ismail Sabri in a statement today said the government will announce new ceiling prices for chicken soon.

“Putrajaya has decided that the prices of chicken will not be floated in the market. Instead, the Agriculture and Food Industries Ministry will announce new ceiling prices soon.

“Also, by not increasing the electricity and water tariffs, Putrajaya will continue to pay RM5.8 billion in subsidies.

“This is despite the increase in costs of fuel and power generation.”

The price of standard chicken has been capped at RM8.90/kg and the price of dressed or super chicken has been capped at RM9.90 since February. These prices were to be floated come July 1.

The proposal follows the chicken “shortage” since Hari Raya Aidilfitri last month, with farmers citing the adverse weather, disease, foreign labour shortage and escalating cost of feed.

Nanta earlier this week said without the subsidies, the prices of chicken will breach RM10 but hopefully not reach RM12.50.

On the electricity tariff, Ismail Sabri said the 2 sen/kWh rebate for domestic consumers will remain unchanged in the peninsula, with no added surcharge.

For commercial and industrial users in the peninsula, the 3.70 sen/kWh surcharge will be maintained.

Speculation ran rife that the electricity tariff will rise after Energy and Natural Resources Minister Takiyuddin Hassan in March said tariff increases have to be passed on to consumers due to higher global oil prices.

He said Tenaga Nasional Bhd had paid additional fuel and generation costs between July and December last year and needs to recover the sum to pay for its operations costs for the January-June period this year. – June 24, 2022.