The government says it is considering setting a ceiling as a means to tackle the issue of escalating oil prices, Bernama reports. According to second finance minister Datuk Seri Johari Abdul Ghani, it will be up to the government to set a ceiling which will be deemed fair to all.
“When we (the government) have decided on the ceiling price, whether they (oil and gas industry players) want to sell the oil at lower prices for promotional purposes, we leave it to them. This is one of the options we are looking at,” he said.
He said the government will need to be mindful whether the policy will pose an issue for those living outside the city. “We are afraid the industry players will pay more attention in obtaining revenue from consumers in the city and don’t want to do the same for those in the outskirts. We have to be wary of this too,” he said.
He said that that fuel subsidies will not be reintroduced, explaining it would not be good for the Malaysian economy and was not sustainable. He said the government would come out with a mechanism. “As of now there isn’t a formula yet, but the government has already decided that it can’t reverse this (subsidy) policy,” he said.
Johari said the government was mindful of the cost of living and it was identifying the pressures of the bottom 40% (B40) income group. “We are aware of the oil prices. We will monitor them. If they keep on increasing and if there is additional revenue, I think the government can consider a different form of assistance to the lower groups, but not those who are well-off,” he said.
He explained that if the current Bantuan Rakyat 1Malaysia (BR1M) aid was insufficient, the government might consider increasing it to cushion the impact of the increase in oil prices, and reduce it accordingly if prices fell. “If oil prices decline in the future, the government needs to take back the BR1M. These are the variables and formula that the government needs to undertake,” he said.
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The ceiling also they will cheat. In 4 months our petrol have gone up a whopping 60 sen. But in Singapore, the price of petrol remain more or less the same as they truly follow global float system.
Malaysians are being lied to. Clever Malaysians can open the Internet and see, oil prices are still very low globally. By right, our Ron 95 should be RM1.30 at the moment.
We as Malaysians are giving RM1 FREE money for every litre we pour to the Gomen. Each car fills about 40 litres twice per week. So, we give RM320 (40 x 8) of free money to the gomen.
Calculate that will 10 million cars.
Gomen makes BILLIONS per month and yet our hospitals and schools budget slashed to the maximum. Gomen hospitals now don’t even have money to give ubat or do blood test also.
Where is the money going?
Haha..a mediocre trying to be smart here. Fuel price in Singapore is liberal means that it’s subject to retailing companies. Price is determined by adding handling costs plus revenue. As of today, it’s sgd 2 for ron95 after discount. Ron95 for rm1.30? Go korek at your own backyard la.
Cybertrooper detected. Desperado
I love malaysia, this is a country that i was born. Buy i dont love the gomen, & political parties as umno, pkr, dap, & others, all making shit.
here comes the joker. The G said themselves song themselves, you also song with them.
Actually I must say Well Done to U for Trying Very Hard to defend our Gov at ALL cost including coming out with ridiculous ideas/comments even if it sound stupid.
U must be praising yourself when U mention “increasing talent that is working hard in our ministries”. What’s the matter CEng, Not enough projects from your Boss to supplant your expenses ka ?!
I feel sorry for you man bcos Najib do not have the time 2 read here la. U should directly Tweet him 2 ask for some favor.
GE14 is coming!
Even without subsidized oil, people still smuggled it out to neighboring countries. We must contain this with tight enforcement. Monitoring our enforcement officers at border to ensure they’re not the culprit. Then, we should be prudent with our expenditure among ministers. No more lavish overseas trip with big entourage. Leaders must lead good examples only then rakyat can appreciate. Please get rid of dumb ministers who like talking craps and don’t walk the talk.
lets wait and see how it turns out.
Saya Putar , Halim
If fuel subsidies is not sustainable, HOW THE HECK is BR1M any more sustainable? Enlighten me.
First of all BR1M is given in cash form, means gomen can NOT track how the money is spent. People may use it for different means and wrong reason (eg: gambling, buying cigarettes )
Second, I am certain the total amount used to give out BR1M can be used to invest in something more beneficial and sustainable for the lower class income. (eg: low cost houses, build schools, fund scholarships) #educationisSUSTAINABLE!
this is the G, they give BR1m to buy votes. sustainable or not is not priority. imagine suddenly u take away this cash, people will not happy, then they lose votes. those people already used to get br1m as an extra income for whatever spending, take away is a revolution, big change. BR1M should not be started at all, only beneficial to the G, not the people, only make people slack and wait for the money, we suffering in higher tax, and drag the country economy.
Pretty sure most economist would say fuel subsidies are not sustainable. Only an LSE grad from DAP Perak Economic Development Bureau Chief would say it is (sellout).
Cash handout is the best alternative for fuel subsidies. This is noted by World Bank, IMF and economist worldwide. Sure, you can’t track what the money is used for, but ultimately, that money is supposed to be used to alleviate the rise in fuel price.
Are cash handout sustainable in the long run? Probably not. But it is still cheaper than just subsidising the fuel at pump.
By your logic, if you have 3 kids in your family. The one that always fail, you hand him out money, the one that score 1st in class, you dont give anything.
It’s not easy to explain why subsidies are worse than handouts. That’s why the general population sees it your way, because they don’t understand it. On subsidies – basically why should a Porsche Cayenne use subsidised fuel? Or anyone who drives a luxury car. One example. On handouts – at least we are sure the money is going to those with lower income, people with medium to high income do not need subsidies. What the money is used for is up to their discretion. It reenters the economy anyway through retail spending.
The main thing is, stop looking at the government as an entitlement. You are not entitled to anything. The govt should not even be involved in providing entitlements unless they are for welfare. We need a better welfare system than br1m. But there are people, an unbelievably huge number of people, who think that paying higher tax means they need special treatment. I can these people lowlife scum.
On a final note. Yes I’m a high earner. Yes i hate the corrupt govt. Because some people question my credibility. Learn, study and understand before you comment.
Look like Gomen finding was to raise money for the coming elections!!!!
Err…set the ceiling price make more money while petrlm price up around the world? I’m confius.
“We are aware of the oil prices. We will monitor them. If they keep on increasing and if there is additional revenue, I think the government can consider a different form of assistance to the lower groups, but not those who are well-off,”
We are aware but we still didn’t have any plan.
And if you really want to help the public, why not cut down prices for PHEV vehicles and EV chargers, make it affordable for the public. Strongly encourage your P1 and P2 to build “reliable” PHEV
Then the rakyat will not complain much about any rising petrol prices.
When the rakyat are consuming less petrol, more petrol can be sold to foreign countries which can benefit our country’s economy. Profit from foreigners is better than profiting the rakyat right?
Win win situation.
By doing that this Gomen will have to forgo plenty of revenue by way of reduced import/excise duties which they can ill afford. In fact, if they can, they would like to increase it instead.
Even no tax on ev, they still not come cheap
It is still subsidy but in another name.
haiya the G always said themselves song themselves, kaki gong kaki song la.. talk cock number 1. wait and see what reason they gonna give next time. no formula for oil price? my asx. formula is easy and clear, equal to ahjib’s debt, how much he wants to suck from us.
Ceiling price MYR5 / liter?
As always, nonsense >!<
I prefer fuel not to be subsidize in any mean. Foreigner from Singapore and Thailand are taking advantage from it. Infact even the people selling it to foreigner. Problem is, Malaysian could not afford the fuel. Should set higher income for Malaysian.. hahahahahha if it was easy as saying it.
Kunta said Sg price cheap. Why la they come here to fill
The money used for subsidise fuel price after ‘many hands’, how much is lost or cost into management cost for the Br1m?
another day another twist from Do Re Mi gov
What a load of BS…. to set a limit? So if the world crude oil prices overshoot that limit, who will pay for the excess? The gov, I mean your taxpayer right? You need to be a total idiot to believe that limit is to help the poor.
Any way its about time Bolehland learn from SG, not only fuel prices are not subsides, the gov takes 68c for every $1 of fuel sold.
Complain fuel prices too high? Then give up driving! How can the gov and taxpayers be responsible if u have money to drive your car or not.
Your country logic is really warped… With the borderling drivers off the road, you can reduce traffic congestion too.
And you have less junk cars on the road. Road safety and air quality will be drastically improved too.
Isn’t that great?
if price ceiling is RM6 per litre, every single month it can stay at RM6. i don’t trust the price ceiling.
Give me Gaji equivalent to global, then i will follow global oil price.
No need subsidies. Just do anything to increase the Ringgit value against the USD. That will solve alot of high prices and inflation problems faced by the lower income group. If the ringgit continues to depreciate, it is just a matter of time before our currency value will become like Indonesian Rupiah.
kang kong ada price ceiling tak ?
Fixed rate should last for 3 years. Can this happen?
Oh wait, BR1M to cushion the rising petrol price? How? IMO, the government giving way too much BR1M already. I know this not the BR1M topic, but…. to me, it’s a simple calculation. Provide BR1M only to the poor & elderly. Remove the others, use it cushion the rising petrol price. Everyone happy.