The diesel price has to go up by three sen per litre as the goverment had subsidised it a lot previously, Minister of Domestic Trade, Cooperatives and Consumerism Minister, Datuk Seri Hasan Malek said.

"The diesel subsidy was too much. After we conducted a study, we found that we had no choice but to increase its price," he told reporters after opening the Giant hypermarket in Kampar, Monday.

In a statement Sunday, Hasan said the retail price for RON97 and RON95 would be cut by nine sen to RM2.46 per litre and four sen to RM2.26 per litre, respectively while diesel would go up by three sen to RM2.23 per litre.

On complaints by petrol dealers that they would suffer losses after buying the fuel at a higher price earlier, Hasan said the drop in prices followed the current trends.

"That is why dealers have to prepare themselves. I am happy with all their support. We always communicate with each other and so far I don't think there is any problem.

"We are studying their complaints as we want to make everybody happy and make it easier for them," he said.

Hasan said the government would monitor the market this month to fix the prices for petrol and diesel for the following month.

He said manufacturers and wholesalers should lower their retail prices following the reduced petrol prices.

"Retailers must follow Giant's example by having a large-scale promotion on its goods. Since petrol prices had dropped, so should be the prices of goods and if we find anyone who fix unreasonable prices, we will take action," he said.