Bernama : Petrol Price Up Again

Petrol Price Up Again
February 27, 2006 23:14 PM
URL: http://www.bernama.com/bernama/v3/news.php?id=182852

KUALA LUMPUR, Feb 27 (Bernama) – The retail price for petroleum products including diesel will be raised by another 30 sen effective Tuesday.

“The government has decided to raise the retail price of petrol and diesel by 30 sen per litre and the price of LPG by 30 sen per kilogram effective tomorrow (Tuesday),” said a statement from the Prime Minister’s Office Monday night.

The increase was to tackle the impact from the increase in the price of crude petroleum in the world market and to curb the increase in subsidy which had to be borne by the government, the statement said.

However, the statement said that the government gave an assurance that there would be no further raise in the retail price of petroleum products this year.

The last time the government raised the retail price of petroleum products was on July 31, 2005 where the price of petrol went up by 10 sen per litre, diesel by 20 sen per litre and LPG by five sen per kilogram.

The new price of RON 97 petrol is now 192 sen per litre, RON 92 Petrol – 188 sen per litre, Diesel – 158.1 sen per litre and LPG – 175 sen per kilogram.

In Sabah, RON 97 Petrol will cost 190 sen per litre, RON 92 Petrol – 188 sen per litre, Diesel – 158.4 sen per litre and LPG – 183 sen per kilogram.

In Sarawak, RON 97 Petrol will cost 191 sen per litre, RON 92 Petrol – 188 sen per litre, Diesel 157.8 sen per litre and LPG – 183 sen per kilogram. All the new prices are higher by 30 sen.

"The retail price for petroleum products is being raised because in 2005 the amount of subsidy borne by the government was RM7.41 billion. Whereas tax exemption stood at RM7.85 billion.

“The burden of subsidy and tax exemption borne by the government from January to February 2006 was RM1.19 billion and RM1.44 billion respectively,” the statement said.

The statement said that without subsidy and tax exemption provided by the government, the retail price of these products in March 2006 would be higher.

Without the subsidy and tax exemption, the price of RON 97 in the peninsula would have been RM2.46 per litre, RON 92 – RM2.37 per litre, Diesel – RM1.98 per litre and LPG – RM3.21 per kilogram.

In Sabah, RON 97 petrol without subsidy and tax exemption would have been RM2.45 per litre, RON 92 – RM2.37 per litre, Diesel – RM1.97 per litre and LPG – RM3.35 per kilogram.

In Sarawak, the price of RON 97 petrol without subsidy and tax exemption would have been RM2.45 per litre, RON 92 – RM2.36 per litre, Diesel – RM1.97 per litre and LPG – RM3.34 per kilogram.

“Although the government is raising the price of petroleum products, diesel and LPG, the price of petrol and diesel in Malaysia is still cheaper compared to the price of most of these products in the Asean countries except for Brunei Darussalam,” the statement said.

The statement also said the price of petroleum products in several other countries, including Asean countries, was higher than in Malaysia. per litre), diesel (RM2.28 per litre) and LPG (RM1.65 per kilogram).

In Thailand, the price of RON 97 petrol is RM2.52 per litre, RON 92 (RM2.45 per litre), diesel (RM2.28 per litre) and LPG (RM1.65 per kilogram).

The price in the Philippines is RM2.21 per litre for RON 97 petrol, RON 92 (RM2.20 per litre), diesel (RM1.95 per litre) and LPG (RM4.90 per kilogram).

In Singapore, it is RM4.15 per litre for RON 97 petrol, RON92 (RM3.89 per litre), diesel (RM2.39 per litre) and LPG (RM5.32 per kilogram) while in Brunei the price for RON 97 petrol is RM1.22 per litre, RON 92 (RM1.19 per litre), diesel (RM0.71 per litre) and LPG (RM1.40 per kilogram).

In Indonesia, it is RM2.30 per litre for RON 97 petrol, RON 92 (RM2.20 per litre), diesel (RM1.68 per litre) and LPG (RM1.89 per kilogram).

The statement said the government had also introduced a diesel subsidy system for 84 per cent of vehicles in the land transport sector comprising public transport operators and consumer goods services through the use of fleetcards.

“With the use of fleetcards, they are able to buy diesel at a subsidised price of 15 sen lower than the fixed price,” it said, adding that the Domestic and Consumer Affairs Ministry had issued a letter to inform the eligible operators of the matter.

The Prime Minister’s Office also said the financial savings from the increase in the price of petroleum products would be used to finance development projects and improve the public transport system for the benefit of the people.

– BERNAMA

Hi,
I listen to the radio last night and heard that the petrol price will increase 30cents higher than it was!Oh my god!its supposed to be high since last year,161 per litre.But its hikes again 30 cents and make it into 1.91 in average.This morning i read the newspaper regarding to it,the reason government increase the prices of petrol is that “The burden of subsidy and tax exemption borne by the government from January to February 2006 was RM1.19 billion and RM1.44 billion respectively,” and “The statement said that without subsidy and tax exemption provided by the government, the retail above price of these products in March 2006 would be higher”.
The statement above is the main reason why they increase the petrol prices BUT perhaps they have other reason that we as a public dont even know what the hell it is!one of the excuses is world oil market increase which affect ours.But,so far,we have our own resources.Why dont we fully use these resources instead of export it to other country and
import oil in??I,as a user,considered that hiking a prices of petrol is not worthy at all.Yes!considering the cost to convert the oil into the petrol for mechanical devices its true and i admit it that it need much amount of money in lump sum!But,try to imagine,a petrol,that simple liquid prices so much,so expensive??sometimes that i think that to purchase a petrol with such price are not worthy at all.
But,what choices do we have???Agree or not,we stil and yet to agree with the hikes of the prices.!!If government wants to increase the prices of petrol in order to reduce burden of subsidy and taxes,why dont think of other alternative(s)???example,incerase the cigarette price more,or beer and liquer price more!!!All the useless stuff are worthy to be increase highly in prices!
WHY TARGETED TO INCREASE PETROL PRICE?does it because nowadays the numbers of cars increase on the road??So no one will exampted to purchase petrol??I surely think that the government will increase the petrol price again next year.Increasing in prices by 30 cents means increase a damn lots to consumers!!beside whether we realize or not,its somehow burden us,as consumers!!!Cars “drink costs more that your own”

-cheers-
Mark…

Yeah, it never ends. It’s time to invest in oil now. Hehe!

PM: RM4.4b savings from petrol price hike
Tuesday February 28, 2006
URL: http://thestar.com.my/news/story.asp?file=/2006/2/28/nation/20060228192350&sec=nation

PETALING JAYA: The 30sen increase in the price of petrol will result in an estimated savings of RM4.4bil in fuel subsidies, Prime Minister Datuk Seri Abdullah Ahmad Badawi said Tuesday.

Earlier, Domestic Trade and Consumer Affairs Minister Datuk Shafie Apdal gave an assurance that the Government will not raise fuel prices again this year.

Double whammy from higher fuel price
Arfa’eza A Aziz Feb 28, 06 6:59pm
URL: http://www.malaysiakini.com/news/47614

[…]
On the same issue, Greg Lopez - a researcher from Kuala Lumpur-based NGO Monitoring Sustainability of Globalisation - said the real issue is not the international price of oil but rather, the government’s approach in dealing with the problem.

He said the government under the administration of premier Abdullah Ahmad Badawi seems to have adopted a philosophy that is not in the general interest of citizens.

"We do understand that the government has no say in the international price of oil and that it is saving some RM7.41 billion on fuel subsidies, but how much longer does it plan to pass the bulk of the problem to the consumer?

“Why is it transferring the price of oil to the citizens? They say that they
cannot bear the cost any longer and so the consumers are the ones facing the brunt!”

He claimed that the government is also using the same excuse (saving on
subsidies) in allowing increase of price for other public services.

“The government is also asking the consumers to pay more for water… the government states that it is only willing to subsidise this much and that we have to pay the balance…we’ve seen this in the electricity tariff and in
fares on public transportation services.”

While subsidies on sectors that affect the larger community are being
slashed, he noted that subsidies to the business communities continue in the form of entrepreneurship funds and industrial zones incentives to attract and woo foreign investors.

"It would seem that the government’s philosophy is that it is willing to
subsidise business sectors, but the average citizen must work hard to
overcome the price increase because the government cannot seem to manage the economy.

“So the government is transferring part of its problems to consumers to
avoid from going bankrupt.”

Petrol hike sets opposition ablaze
Claudia Theophilus Feb 28, 06 5:50pm
URL: http://www.malaysiakini.com/news/47609

Voicing strong criticism against government policies pertaining to petroleum products and development projects, Malaysians are demanding to know the rationale behind the price hike.

Effective today, the price of diesel in Peninsular Malaysia increased by 23
percent to RM1.58 per litre while petrol will now cost 19 percent more at RM 1.92 per litre.

In addition to being shocked, this is what opposition parties had to say.

DAP secretary-general Lim Guan Eng:

The DAP strongly condemns the 30 sen increase in the price of petroleum
products. The move is highly irresponsible and uncaring of the financial
burdens of Malaysians including wage earners, low-income groups and
small-time businessmen.

With petrol prices and inflation rising, how are wage-earners going to cope
when their salaries do not go up?

Furthermore, why should the government increase the price of petroleum by 20 percent or 30 sen per litre when the international price of crude oil
dropped yesterday by US$2 per barrel or two percent to US$61?

Normally petroleum prices increase when the price of crude oil increases but the government must justify its case for doing so when the price of crude oil is going down.

With the latest price increase, the difference is not far off. The DAP
proposes that the government allows the price of petroleum products to
increase to its market price provided that Petronas distributes its profits
to the people.

The company’s profit for the 2004-2005 financial year was at least RM35.5
billion excluding the RM31.2 billion paid to the government in the form of
taxes, duties and royalty payments. This would allow every Malaysian to take home at least RM1,500 per annum.

For the latest financial year 2005-2006, Petronas is expected to increase
its profit to nearly RM50 billion, allowing each and every Malaysian (to
take home) nearly RM2,000 each.

Such an approach would have three-fold benefits by not creating market
distortion in the actual prices of our products, improve efficiency and cut
down losses due to smuggling of our cheaper fuel overseas.

The government has claimed that fuel-smuggling has led to losses of up to
RM750 million.

The DAP rejects as ridiculous and unreliable the explanation that the
financial savings from the increase in the price of petroleum products would be used to finance development projects and improve the public transport system for the benefit of the people.

Clearly the latest 30 sen increase would cover all the subsidies borne by
the government of RM7.41 billion. Are people going believe the explanation that the RM7.41 billion saved would be used to finance development projects and improve the transportation system?

If so, what happened to the billions of ringgit saved over the last two
years when the price of diesel and petrol were increased by nearly 50
percent?

The DAP also regrets the secretive and surreptitious manner in which the
price increase was announced at 10.30 pm to prevent motorists from queuing up to pump petrol before the price increase.

Such a secretive approach does not inspire confidence and trust in the
government handling of the economy for their benefit but create suspicions that it is more interested in allowing petroleum companies to enjoy the price increase.

PAS vice-president Husam Musa:

We will be staging a protest at KLCC on Friday and submit a memorandum to the government as part of a nationwide protest.

We want the pricing of petroleum products to be reviewed We also want to
tell the government not to take its power for granted.

The people are totally shocked at both the timing of the announcement and the increase. The government didn’t even drop any hints… this shows a people-unfriendly administration.

This also reveals the lack of any plans to use Petronas’ profit to cushion
the impact of global oil price movements. I expect the 30 sen hike to slow
down the country’s economic growth in addition to burdening the people by increasing their living costs.

Parti Keadilan Rakyat Youth vice-president Shamsul Iskandar Mohd Akin:

The price hike will lead to a larger income gap in Malaysia. We are giving the PM seven days to immediately reverse the increase, failing which we will mobilise a nationwide protest beginning March 3 in front of KLCC.

We strongly oppose the move which has an adverse impact on Malaysians particularly the middle- and lower-income groups.

We insist that the price increase is totally unjustified due to the drop in world oil prices since 2005. Throughout last year, the petrol price has risen from RM1.10 to RM1.60 and is now at RM1.90.

An increase in land tax, water rates, the new electricity tariff next month coupled with higher petrol prices will clearly burden the people.

Unfortunately, the salary increment announced for government servants doesnot reflect the simultaneous increase of prices of goods. These worsen individual inequality in Malaysia compared with other countries.

The price hike will lead to a larger income gap in Malaysia. We are giving the PM seven days to immediately reverse the increase, failing which we will mobilise a nationwide protest beginning March 3 in front of KLCC.

This will be interesting to watch. Can you imagine those who couldn’t attend the protest at KLCC would boycott by not going to work - just to save on petrol? I can’t join the fun because I work from home. :frowning: But KLCC is viewable from my balcony. :smiley: