Saturday August 2, 2008

Monthly review of petrol price

PUTRAJAYA: Petrol price will be reviewed monthly from Sept 1 based on the average global market price and subsidy will be fixed at RM0.30sen a litre, Prime Minister Datuk Seri Abdullah Ahmad Badawi said.

The Government assured Malaysians that petrol price would not exceed RM2.70 a litre for this year. This means that although the market price for gasoline increases and the Government may have to subsidise beyond RM0.30sen a litre, the petrol price will not be raised this year.

Abdullah, in a statement issued here yesterday, said the decision was made after the fall of oil prices to US$122 per barrel on Tuesday from US$139, the highest recorded in June.

On June 5, when crude oil price was at US$125 per barrel, the Government announced the restructuring of fuel subsidies. Petrol subsidy was fixed then at RM30sen a litre and the Government said it would review petrol price from time to time.

Crude oil prices went up quite drastically on June 8 to US$139 per barrel.

Abdullah said that even when the oil price rose to US$139 per barrel, the Government maintained the petrol price although there should have been an increase of RM0.40sen per litre as it had given an assurance that there would be no further increase for the year.

Generally in the month of June, the crude oil price was at US$132 a barrel and the Government subsidised RM0.64 a litre, he said.

Earlier, after meeting with Brunei Crown Prince Pengiran Muda Al-Muhtadee Billah Bolkiah at his office here yesterday, Abdullah confirmed that the Government would lower fuel price.

“I hope the trend of lowering fuel prices in the global market will continue so that our price at the petrol pumps will be reduced,” he told reporters.

On Wednesday, the Cabinet had mulled over the possibility of Malaysians paying less for fuel soon due to the global prices taking a tumble.

Asked if such a decision now would be perceived as a political gimmick in view of the impending by-election in Permatang Pauh, Abdullah said this was discussed even before PKR president Datuk Seri Dr Wan Azizah Wan Ismail announced her decision to step down as MP.

“Three Cabinet ministers have already mentioned it earlier,” he said.

Deputy Prime Minister Datuk Seri Najib Tun Razak said that if global fuel prices continued to fall, it was only right that it was reflected in domestic prices.

He said this during the opening ceremony of Franchise International Malaysia 2008 at PWTC here yesterday.

When contacted, some consumer groups are not happy with the decision of fixing petrol subsidy at RM0.30sen a litre.

Federation of Malaysian Consumers Association secretary-general Muhammad Sha'ani Abdullah urged the Government to conduct a thorough study before making any decisions.

“The Government should use the savings from the subsidies to improve public transport so it can really benefit the people,” he said.

Malaysian Trades Union Congress president Syed Shahir Syed Mohamud said the fixed subsidy rate would not help to reduce the burden of the working class as petrol price was still high.