Worried that latest government move to withdraw fuel subsidies may spark a black market and burden the poor, PKR today urged that the move be debated in Parliament.

 

PKR strategy director and Pandan MP Rafizi Ramli said he was worried about the huge misstep that the government would be undertaking if it discriminated the market by giving fuel subsidies according to income.

 

"I worry that if the new subsidy system is not refined and openly debated, it will give rise to a black market for petrol and diesel. This will create an even bigger smuggling problem and involve everyone," Rafizi ( right ) said in a press statement.

 

He was responding to a Sin Chew news report yesterday that the government was mulling a new way to stagger subsidies for petrol from September. Only those earning below RM5,000 and driving a car with engine capacity less than two litres would qualify for the full fuel subsidy, it said.

 

Those earning between RM5,000 to RM10,000 a month will reportedly be getting subsidised fuel as well, but may be limited to 300 litres of RON95 petrol and diesel.

 

Foreigners, foreign-registered vehicles, and those earning above RM10,000 may not be eligible at all, and may have to buy petrol at market prices, the report stated.

 

The details however have yet to be finalised.

 

Pockets hit

Rafizi protested that the sudden move had brought a flood of concern from citizens, as it would directly hit their pockets.

 

"The people needs to be given proper warning, at least a year to give their feedback before a new petrol and diesel subsidy system can be enforced, taking into account the burden that will be faced as a result of the rise in prices of petrol, electricity, sugar and other necessities," Rafizi said.

 

He added that he would be watching the government's moves closely and will rebut it accordingly through more statements.

 

In September last year, the government cut the subsidy for RON 95 petrol by 20 sen a litre, raising prices to RM2.10/litre. This was the first price hike since December 2010. The price of diesel was hiked to RM2/litre.

 

Prime Minister Najib Abdul Razak ( left ) had then dismissed calls to debate the hike in Parliament.

He said "it won't hurt much" as inflation in the country was low. The premier also noted that the government had planned to dish out more cash through Bantuan Rakyat 1Malaysia (BR1M) as a counter measure to help the poor.

 

The move was part of the government's strategy to fine-tune subsidies as announced in 2014 Budget debate in Parliament last October.

Fuel subsidy cap 'mere speculation', says ministry

Subsidised fuel for those earning below RM5k?