Why raise fuel prices when crude price is down?
CQ Muar: Didn't I mention before that PM Najib Razak and his administration are desperately seeking out ways and means, loopholes and whatnot, to rake in money - what else?
1MDB is in dire need to plug and mend its gigantic "black hole”. The attempt will be futile, but the debt-gap might get narrower.
Who bothers how the rakyat suffer? And with the ringgit consistently dipping, I really feel sorry for parents who have children pursuing their education overseas.
Doc: The problem is PKR vice-president Rafizi Ramli is referring to international crude oil economics which follows the simple principle that when crude oil demand drops, oil price drops.
But Malaysia does not follow these international economic principles like the rest of the world does. It follows ‘Najib-o-nomics’ which follows the principle that if crude oil prices go up, oil prices go up.
But when crude oil prices go down, the oil prices will not go down and in certain instances, may still go up. ‘Najib-o-nomics’ also is in line with BN's motto of ‘barang naik'.
Orange88: Spot on Rafizi. I have also been monitoring the daily crude oil price. Yes, you are right. The price of crude was US$66 last May and last night (30 Jun) it was about US$62+.
Rightly, the price of petrol should have gone down by at least 15 sen. Instead it went up by 10 sen.
Anonymous_1419771040: Price of petrol has gone up. Why? Because we bought crude oil at a higher price. Why at a higher price? Because the value of our ringgit has gone down.
Why has the value on the ringgit gone down in spite of our rich resources like rubber, palm oil, petroleum, timber, cocoa, etc? Answer - poor financial management.
Our ringgit should ideally be at US$1= RM2.50.
Wira: Indeed, try plotting the oil price using ringgit instead of US dollar and you'll know why the price of our fuel is still moving up. The ringgit lost a whopping 20 percent the past year against the US dollar. That is about US$12 per barrel at the current oil price.
Of course, the next question to be asked is why our economic fundamentals are not as good as other countries in Asia?
Petrol prices did not go up on March 31 and April 30 after the implementation of Goods and Services Tax (GST). The increase is probably also to compensate revenue losses in those two GST months.
Maybe the government thinks the country is ready for another round of inflation despite the falling ringgit. Fitch gave us a reprieve this morning with GST and the removal of fuel subsidy the key reasons.
Heavy borrowings by Putrajaya to flood government departments with civil servants and the creation of projects and mega companies, like 1MDB, to feed cronies and corrupt leaders, are the key reasons why more tax revenue is needed to run this country.
Freethinker: Malaysia is an oil producer which sells high quality oil, which I presume is transacted in US dollar.
The same dollar would have been use to purchase lower grade oil from the global market at a cheaper price. Therefore by this logic, the US currency should not be a factor in the increase of our oil prices.
Bamboo: With the big 1MDB debt hole to plug, the only source now is the rakyat's money. I guess we are now subsidising the government every time we pump petrol. This will be another strong reason for people to vote BN out in GE14.
ABS: I am trying to understand Greece. When the people were fed up with the government, they voted in a new regime that would 'say no to austerity'. So far it looks like they can't avert disaster or deliver on the election promises either.
Maybe a new regime here may administer more honourably. But I sure hope we're not already too far down the slope that they won't be able to salvage the country's finances.
Mosquitobrain: Miscalculation perhaps - most probably GST collection is below target. Utilities (TNB, tolls) 'naik harga' on hold. Need additional immediate income for 'duit' raya.
To add salt to injury, no more advance notice to inform public of price increase because the auto price mechanism is too complicated for Umno and cronies to understand. The rakyat are BN government’s cash cow.
Senior: If it's a price-controlled item, advance notice is a necessity - in fact mandatory. Confusion at petrol stations is not a factor to consider over the welfare of the rakyat.
Clearwater: Let transparency rule. The government should publish each month the price formula plus their detailed calculations leading to the pump price of RON95 and RON97 petrol for that month.
Sleepy: Don’t we sell our higher grade fuel at higher prices and buy at lower prices in US dollar? Based on my logical assumption, pump prices should be in fact be lower.
Yaa Lorrrr: Previously, every time petroleum prices were raised, the prices of a large number of goods also increased, sometimes higher than the rate of increase in fuel prices.
For example, when petroleum prices increased 20 sen a litre, most restaurants raised the price of drinks by 20 sen a glass. The reason was that the petrol price affects their costs.
Therefore, when petroleum prices were reduced, consumers expect a decrease in the price of goods. However, did food prices and other essential items reduce in line with the new price of petrol?
Dont Just Talk: Can Najib please explain to Malaysians why the Putrajaya government needs to increase the price of RON 95 by 10 cents from RM2.05 to RM2.15 per litre when the crude oil price has dropped from US$66 per barrel to US$62 per barrel.
Can the Umno Baru government justify the price increase and is the money needed to pay for the new VVIP jet and for 1MDB debt?
The poor Malaysians have been screwed left, right and centre and with the Mara scandal next on the dinner table, what other scandals are coming up?
With the new price hike on RON 95, it is expected that there will be another round of inflation from suppliers/food stall operators/hawkers citing higher transportation costs, etc.
Expect Consumer Minister Hassan Malek to follow up with a statement that inflation is less than one percent, and another minister to blame greedy Chinese traders for the cause of it.
Carlim: An early Raya present from the government.
The above is a selection of comments posted by Malaysiakini subscribers. Only paying subscribers can post comments. Over the past one year, Malaysiakinians have posted over 100,000 comments. Join the Malaysiakini community and help set the news agenda. Subscribe now .
These comments are compiled to reflect the views of Malaysiakini subscribers on matters of public interest. Malaysiakini does not intend to represent these views as fact.
