Malaysia's fuel price 'eighth lowest in the world'
The price of fuel in Malaysia is the eighth lowest in the world, with RM23.7 billion in fuel subsidy borne by the government this year.
The price of fuel in Malaysia is the eighth lowest in the world, with RM23.7 billion in fuel subsidy borne by the government this year.
Deputy Finance Minister Ahmad Maslan (
left
) said although the price of RON95 petrol and diesel were increased by 20 sen from midnight on Monday, the price of fuel in Malaysia was still low compared to neighbouring countries.
As such, he said the people should understand that the subsidy cut was a move made by the government for long-term benefits to the economy.
“The subsidy should be channeled to those in need and by cutting the fuel subsidy, the government will be able to channel it back as the 1Malaysia People’s Aid (BR1M) to the low-income group,” he told Bernama after opening the ‘Cerdik Cukai’ Camp organised jointly by the Malaysian Tax Academy and Education Ministry in Kuala Lumpur yesterday.
With the 20-sen increase, the RON95 petrol and diesel are now priced RM2.10 and RM2.00, respectively.
In comparison, the current market price of RON 95 petrol and diesel in Thailand are RM4.74 and RM3.06 respectively, Singapore (RM5.56 and RM4.32), Indonesia (RM3.05 and RM3.43) and the Philippines (RM5.44 and RM4.32).
Meanwhile, MCA president Chua Soi Lek expressed hope the people would understand that the subsidy rationalisation process was meant to help stabilise the national economy.
He said the government had been subsidising RM0.83 for every litre of RON95 petrol and RM1 for every litre of diesel, which cost the government up to RM24.8 billion last year.
“The current subsidy mechanism is benefiting the people across the board, be it rich or poor, which defeats the government’s aspiration to help those who are really in need.
“It has been the party’s stand that subsidy aid should only benefit those who qualified for it as it is meant to ease the burden of the poor,” he said in a statement yesterday.
As such, he said MCA welcomed Prime Minister Najib Abdul Razak’s decision to raise the amount of BR1M, which would be announced in the 2014 Budget.
Since inflation is still on a manageable level, the increase of government aid would help cushion the impact of subsidy rationalisation on the poor and lower income group, he said.
Chua also said the people needed to be educated on the importance of subsidy rationalisation instead of being told to hate the government for measures taken in safeguarding the national economy and its competitiveness.
Special team to study effects on fishermen
In JOHOR BARU, Agriculture and Agro-based Industries Minister Ismail Sabri Yaakob said the ministry had set up a special team to study the effects of the 20-sen increase in fuel price to fishermen.
He said the team would comprise representatives from the Fisheries Development Authority of Malaysia (LKIM), National Fishermen Association (Nekmat) and the Fisheries Department.
“We will study the effects of the increase of the diesel price to the fishermen before taking any further action to ask for additional aid from the government to help them,” he told reporters after opening the 28th annual general meeting of Nekmat on Monday night.
In his speech, Ismail Sabri (
left
) said the fishermen should be grateful as the government had ensured that the increase in the prices of RON95 petrol and diesel would not burden them.
“Many other incentives have also been given to the fishermen, including fish landing incentives, to enable them to enjoy better living conditions than their counterparts in neighbouring countries,” he said, adding that the increase was inevitable following the increase in the global price of oil, especially with some oil producing countries undergoing turmoil.
In KUCHING, Sarawak Second Finance Minister Wong Soon Koh (
right
) said the government could continue to implement the populist policy by not raising the fuel price, but the action was not so good for the country as a whole.
He said the fuel price had to be adjusted from time to time because the subsidy bill had gone up too much, forcing the government to trim it to make it more affordable.
Speaking to reporters at the Kuching City South Council’s Aidilfitri function yesterday, Wong said although the increase would burden the people, the adjustment had to be done.
In KOTA BARU, Federal Agriculture Marketing Board (Fama) director-general Ahmad Ishak said the 20 sen increase in the fuel price would not affect the production cost of agro-products.
He said this was because the mass production at the farms would cover the cost from the increase in the fuel price.
“When the farmers can produce higher yields, the increase in costs won't be so burdensome,” he told reporters when met at Fama’s Aidilfitri function at the Kelantan Rural Transformation Centre yesterday.
- Bernama
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