PKR secretary-general Rafizi Ramli has vowed Dec 31's mass protest over fuel prices will go on despite the falling global oil price.

 

This, he said, is because despite the government's claim that RON95 fuel and diesel price will be based on a managed float, consumers are still being made to pay more than the market price.

 

The Pandan MP said the government's managed float mechanism pledges around 30 sen in guaranteed profit and cost reimbursement to oil companies, which is borne by consumers.

 

As such, Rafizi said the government should foot this 30 sen, without which RON95 price under the managed float next month will be around RM2.20 instead of the current market price of RM1.90.

 

"Pakatan Rakyat is steadfast with its position that if the price of RON95 is not reduced to RM1.90 by Dec 1, 2014, a mass demonstration will be done to demand a reduction in fuel price," he told a press conference in Parliament today.

The government last week announced the abolition of fuel subsidy following falling global prices and put RON95 petrol and diesel on a managed float system.

Rafizi Malaysian consumers are expected to use 14 billion litres of petrol and 10 billion litres diesel this year therefore a 30sen subsidy will only translate to RM7.2 billion a year.

"If BN can guarantee the profit and the cost of oil companies, it does not make sense that they should give the same to the rakyat," he said.

However, Rafizi said he was no calling for the removal of the 30 sen benefit for oil companies but merely for the government to subsidise it on behalf of the rakyat.

He said the benefit was introduced in the 1980s to encourage oil companies to service rural areas that would not be profitable without the benefit.

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