Justice For All Malaysia

Malaysiakini: Price hike, price hike, people…

Posted on: June 5, 2008

Jams and lineups near petrol stations in Kuantan last night (4 June 2008):

Photobucket Photobucket Photobucket

Fuel hike: 78 sen more to RM2.70 per litre
Beh Lih Yi & Chan Kok Leong | Jun 4, 08 4:55pm
The government has announced that petrol price will go up by 78 sen at midnight – a 40.6 percent jump from RM1.92 per litre to RM2.70.


abdullah ahmad badawi govt announce new petrol price increase 040608 07“Effective from tomorrow, June 5, 2008, the price of petrol will be raised by 78 sen and the price of diesel will be raised by RM1,” Prime Minister Abdullah Ahmad Badawi told a 50-minute press conference at his office in Putrajaya.

The price of diesel will increase by a whopping 63.3 percent – from RM1.58 per litre to RM2.58.

The price hikes are among government measures to drastically cut the spiralling bill for oil subsidies, which is expected to amount to RM56 billion this year.

With the new structure, Second Finance Minister Nor Mohamed Yakcop – who was also present at the press conference – said the government is expected to spend about RM18 billion a year on oil subsidies

At a press conference held at 5.30pm, Abdullah also announced that the government plans to offer rebates to motorists to offset the fuel price increase.

Under the scheme, vehicles below 2000cc will receive an annual rebate of RM625 to compensate for 800 litres of fuel used under the new price.

“Owners of private motorcycles of engine capacity of up to 250cc will be paid a cash rebate of RM150 per year,” he said.

petrol price hike before increase panic consumers 040608 03According to the prime minister, the money will be paid by money order. Rebate will be paid when motorists renew the road tax for their vehicles.

The government is expected to save RM13.7 billion under this new subsidy restructure and other levies.

The figures are derived from the savings made by state-owned oil company Petronas in gas and oil (RM8 billion), petrol (RM4 billion) and the independent power producer and palm oil (RM1.7 billion).

The surplus of RM13.7 billion will be used for food security policy (RM4 billion), subsidies in cooking oil (RM1.5 billion), rice import (RM400 million), flour and bread (RM300 million), petrol, diesel and gas (RM7.5 billion), Abdullah explained.

Since 2004, petrol has gone up by 97.1 percent, while diesel increased by a whopping 231 percent [see chart below].

Higher TNB tariffs

Abdullah also announced that the road tax for vehicles above 2,000cc will be reduced by RM200.

abdullah ahmad badawi govt announce new petrol price increase 040608 02For motorbikes above 250cc, their road tax will be slashed by RM50, but a minimum rate of RM2 road tax will be maintained.
The diesel subsidy for fishermen and vessel owners have been fixed at RM1.43 per litre. Previously fishermen bought diesel at RM1 per litre while vessel owners paid RM1.20 per litre.

The premier also announced a price hike in gas supply for electrical and industry sectors.

The premier added that the electricity tariffs too will be increased, effective July 1.

petrol price hike before increase panic consumers 040608 04He said the power tariff rate would remain the same for households which use below 200 kilowatt of electricity, which amount to RM43.60.

However, those using more than 200 kilowatt will have to pay around 20 percent more.

National power supplier Tenaga Nasional will announce its new price structure at 12 noon tomorrow.

The prime minister, in anticipating public anger from price hikes, has urged Malaysians not to organise street protests.

“The cost of petrol and commodities has risen drastically and so subsidies have to be restructured,” he lamented.

“God willing I hope Malaysians will not demonstrate over this,” he said, referring to fury over earlier hikes in a country where public transport is poor and most people are reliant on their cars.

Expect more price hikes

Abdullah said that under the new scheme, the government will maintain a 30-sen fuel subsidy, which is independent of the market rate of fuel prices.

petrol price hike before increase panic consumers 040608 01For example, if the market rate is RM3 per litre, the local pump price will be RM2.70 per litre with the 30-sen subsidy.

He said that the government would review the market price on monthly base and announce the subsidised price accordingly.

Abdullah also said that he was confident the economic growth could be maintained at five percent and inflation at four to five percent.

Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad, who was also at the press conference, conceded that the increase would impact on inflation, which came in at 3.0 percent in April.

“With this hike, the CPI (consumer price index) is expected to rise to 5.0 percent” this year, he said.

He also said that the new price of RM2.70 did not reflect the full market value, which could be as high as RM3-4 when the price controls are completely removed in August.

abdullah ahmad badawi govt announce new petrol price increase 040608 01Also at the press conference were Deputy Prime Minister Najib Abdul Razak, Minister in the Prime Minister’s Department Amirsham Abdul Aziz, Information Minister Ahmad Shabery Cheek and International Trade and Industry Minister Muhyiddin Yassin.

Watch 1-min video of vehicles queuing at the pumps
petrol price hike new price 040608

Electricity tariffs to rise by up to 20%
Beh Lih Yi & Chan Kok Leong | Jun 4, 08 9:30pm

It’s a double whammy – apart from announcing a
hefty fuel hike today, Prime Minister Abdullah Ahmad Badawi also revealed an increase in electricity tariffs effective July 1.

The tariff rise – by up to 20 percent – will affect about 41 percent of the households in the country, said the premier during a press conference in his office in Putrajaya this evening.

new electricity tariffs 040608According to Abdullah, for households that use less than 400 kilowatt units per month, the following rates apply – the first 200 units will remain at 21.8 sen per unit.

The following 200 units will be 34.5 sen per unit, up from 28.9 sen – an increase of 19.4 percent.

Users who use more than 400 units will have to pay higher rates.

The first 500 units are now priced at 30 sen per unit with gradual increases all the way until 900 units.

Usage above 900 units is capped at 46 sen per unit.

Meanwhile, electricity tariffs for commercial and industrial users will rise 26 percent.

National energy supplier Tenaga Nasional will be holding a press conference at noon tomorrow to further explain the rise in tariffs.

Taxing power and palm oil producers

Meanwhile, the independent power producers who have contributed to the price increases of gas will have to pay a levy under the Windfall Profit Levy Act 1998.

Also included in the tax scheme are palm oil producers, who have enjoyed higher profits as a result of the rise in oil prices.

In place of the current cooking oil subsidy scheme (COSS), which will be withdrawn effective July 1, palm oil producers will also have to pay a levy under the Windfall Profit Levy Act 1998.

abdullah ahmad badawi govt announce new petrol price increase 040608 02For East Malaysia producers, 7.5 percent will be levied on each ton of crude oil palm produced above RM2,000.

For West Malaysia producers, 15 percent will be levied on each crude palm oil ton above RM2,000.

However, the price of cooking oil is expected to be maintained despite the abolishment of COSS as the new levies collected will be used to subsidise the price of cooking oil.

The levy for East Malaysia is lower as the producers there already pay a tax (7.5 percent in Sabah and 5 percent in Sarawak).

Abdullah had earlier announced that petrol price will go up by 78 sen at midnight – a 40.6 percent jump from RM1.92 per litre to RM2.70.

The price of diesel will increase by a whopping 63.3 percent – from RM1.58 per litre to RM2.58.


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Must Attend Program

Please go to this link: https://justice4allkuantan.wordpress.com/2008/10/25/invitation-public-forum-the-isa-and-the-police-reform-process-whats-next-after-pak-lah/
To sin by silence when we should protest makes cowards of people - Emily Cox

Siphoning EPF money

On 'Why should Valuecap borrow from EPF?' Syed Shahir Syed Mohamud: MTUC condemns the government's move to bail out Valuecap to support the local stock market using RM5 billion from EPF, as the provident fund is the custodian of the workers' money and not some sort of ‘automated teller machine' for the government.
If at all the EPF were to lend its money to the government, it has to be under the condition that there be transparency and accountability in the activities for which the money has been purposed. We want to know who is doing what with the money that belongs to the workers. This is the hard-earned money of the workers, their retirement plan. How is this bailout plan going to benefit the workers? We also question the reason for this bailout. If the economic fundamentals in Malaysia are strong and reserves sufficient as has been stated several times by the government, then why is there a need to offer so much money to the GLCs? Second Finance Minister Nor Mohamed Yakcop should prove how the EPF would profit from this loan. Bernama had reported that Nor had given the assurance that the loan given out by EPF would reap profits for the fund judging from Valuecap's past performance. But where is the paperwork and calculations to show that this move will benefit the EPF? MTUC is concerned that the loan might be mismanaged or misused and this, in turn, would affect the returns for the contributors. Mere assurances are not enough. We want to proof that this RM5 billion will not go down the drain. (The writer is president, MTUC). Sharyn: The government wants to use our pension money to prop up the Malaysian stock market which is the playing field of the rich people. If so, the government must ensure that the EPF account holders - who are predominantly the poor to average citizens of Malaysia - be guaranteed all of our pension money with a compound 8% growth (interest). It's so selfish and sick of the government to use the poor's pension money to help the rich to make more money with all the risks taken by the poor/average citizen. We can better use the RM% billion loans to Valuecap for our children's education, shelter, medical bills etc. Why not get those rich people to prop up the share market instead? Why should they park their money overseas and gamble with our EPF money instead? Kumar14: Who is behind this Valuecap organisation? Why suddenly, this separate entity is allowed to access funds from the EPF? Are they capable enough to handle it or is it just another desperate and blind move? It has been a very infamous trend where the people's funds are channeled to a company for investment purposes and suddenly POP! the funds disappear and there is nobody to be held responsible but a RM2 shell company. Charge who? Sue whom? The RM2 company (just a registered name)? We have seen this many times. People in power and with connections allow such things to go through and reap/rob the people's wealth and then blame it on organisations which actually don't exist. What if a lot of EPF funds are looted via such scams and nobody is to be pointed at? Where will the government get the funds to replenish the EPF? The people are very bored, disappointed, angry and frustrated at seeing all these dumb and unaccounted for measures being allowed by the government with lame excuses. Please, somebody verify the true purpose, integrity and capability of anybody attempting to use the people's fund.

Raja Petra

Photobucket Ihsan dari blog Go!Malaysian http://gomalaysian.blogspot.com/


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