MP: Why raise fuel subsidies amid dropping oil prices?
DAP’s Tanjong MP Ng Wei Aik has questioned the government’s move to increase the funding for fuel subsidies amid dropping oil prices globally.
DAP’s Tanjong MP Ng Wei Aik has questioned the government’s move to increase the funding for fuel subsidies amid dropping oil prices globally.
“The government is seeking to increase the subsidies for liquefied petrol gas, diesel and petrol and cash aids to RM22.341 billion, compared to the RM20.015 billion originally estimated in the 2013 federal budget,” he said during a press conference at the Parliament lobby today.
He said that diplomatic efforts aimed at Syria and Iran, along with the US government shutdown recently, had meant that the oil price globally dipped to below US$102 a barrel.
“Global oil prices are expected to fall moderately in 2014 as new supply comes on line from the US, Iraq, and other countries. Futures markets also indicate lower prices next year,” he said.
“There is no necessity for the federal government to increase fuel subsidies through the 2014 Budget,” he added.
He said that over the past two-and-a-half months, eight countries have lowered their fuel price in line with global oil prices.
The countries were India (New Delhi state), Taiwan, Ghana, Vietnam, Bermuda, South Africa, Georgia, and China.
“The need to increase fuel subsidies by 11.62 percent is highly questionable,” he said.
He said that the government’s urgency should rather be in immediately lowering fuel subsidies, as well as to reduce fuel prices in order to reduce the burden of the people.
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