PM: No more petrol price increases this year

Wednesday June 11, 2008 MYT 7:45:50 PM

PM: No more petrol price increases this year

PUTRAJAYA: There will be no further increase to the price of fuel in the country this year despite the possibility of the global price of oil reaching US$200 (RM660) per barrel, the Prime Minister said.

This latest decision by the Cabinet came on top of various measures announced on Monday to help the Government cut costs and channel more subsidies to low income earners.

Datuk Seri Abdullah Ahmad Badawi said to stem any more increase, the Government would have to think of alternative ways to finance its spending.

If that is the decision of the Cabinet, this will remain so despite further jumps to the global price of oil.

Since the Government announced the new price last week, fuel prices have gone up to US$139 (RM459) per barrel and is still hovering at US$130 (RM429).

In fact, the price of oil is expected to remain at high levels in the months to come. The high price of oil means that the market price of petrol at the pumps have now reached RM3.45 per litre, he said, adding that the price should be reviewed to RM3.15 per litre instead of RM2.70 beginning next month.

However, the Government realises that the rakyat (citizens) are still trying to adapt themselves to higher petrol prices. The Cabinet has thus decided there will be no more increase this year, he told reporters at his office here on Wednesday.

If the global price of petrol should ever drop, Abdullah said the Government would make the necessary adjustments with the 30 sen discount still being given.

In the June 4 announcement of the new petrol price, Abdullah had said that prices at the petrol pump would be adjusted monthly to reflect global market price.

The Premier also said that in the National Inflation Council meeting on Monday, it had been decided that the over one million civil servants would now be paid their monthly salaries in two instalments, staring in August.

The first instalment will be paid in the middle of the month while the second will be at the end of the month.

Any income tax, Employees Provident Fund or others will be deducted from the second instalment, he said. … sec=nation