The government’s decision to scrap the subsidies for RON95 and diesel will only benefit it at the expense of the people, says Pandan MP Rafizi Ramli.

“With the abolishing of petrol and diesel subsidies, the gains from the fuel and gas resources will be absorbed by the BN. It will be the one deciding how much provision will be given to the people,” Rafizi, who is also PKR vice-president and secretary-general, said.

By eliminating the fuel subsidies, he said, the government was trying to make up for losses that they have lost through wastage and corruption, especially with the recent 1MDB scandal.

“The current administration has proven that there is no effort to eradicate corruption. By abolishing the fuel subsidies, the gains made from oil and gas will be focused on paying up all the wastage and corruption under the prime minister.”

Rafizi ( right ) also demanded that Prime Minister Najib Abdul Razak reviews the “managed price floating system” and instead allows petrol companies to set their own rates according to the price ceiling.

“Through this open price method, companies that are under the BN government, like Petron, will face difficulties to compete as they are not among the petrol companies that have an integrated operation,” he said in a statement today.

Rafizi also urged Najib to announce the abolishment of excise duties for cars in stages to ensure that the national car market prices are on par with other countries.

“All this while, the government has given the excuse that the people need to pay a high excise duty for cars as it was providing subsidy for petrol and diesel. This excuse cannot be accepted any more.

“If the prices of petrol and diesel are to be set based on market cost and price, the car prices must also follow the market price,” he said.

Rafizi added that if the excise duty on cars is not abolished, the “government will be expected to rake in RM17.3 billion from all vehicle taxes next year, without any being returned to the people”.

The government today announced that it will from Dec 1 scrap the subsidies for RON95 petrol and diesel.

Domestic Trade, Cooperative and Consumerism Minister Hasan Malek announced that both types of fuel will be sold based on the managed float system.

MIC Youth welcomes move

Meanwhile, the MIC Youth welcomed the abolishing of the fuel subsidies, saying it would ease the consumers from the subsidy mentality and be in line with international market practice.

MIC Youth chief C Sivarraajh said this could well be the first step in abolishing the subsidy concept, which he hoped would continue with the removal of other subsidies.

“This decision will help wean our consumers from the subsidy mentality and look towards a managed free float on the international market place.”

However, Sivarraajh ( left ) added, the government must keep a close watch on the prices of essential items that traders might hike due to the petrol subsidies being abolished, especially with the introduction of the goods and services tax (GST) next year.

“The government must ensure that prices of essentials goods are not hiked up by unscrupulous traders,. especially in the rural areas where people have to go to the same shops for lack of competition,” Sivarraajh said in a statement today.

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