Najib hints at oil price hike again

Deputy Prime Minister Datuk Seri Najib Tun Razak spoke yesterday to the media after world oil prices soared to a record high of over USD$70 per barrel.

He said the government would have to hike up the prices of petroleum and diesel again if the current upward trend continues. Analysts have said prices would touch USD$80 a barrel soon following the current trend.

He advised the rakyat not to blame the government for this:

It is not only the Malaysian government. No government in the world for that matter cannot maintain the current price if the world’s oil price continues to surge.

He stressed that the government’s coffers were suffering from subsidies, and that money from fuel subsidies should be used for other important needs.

My humble Satria 1.6’s fuel tank already costs RM72.90 to refill. And I have nothing to say about our public transportation system. Not worth commenting about. It virtually doesn’t exist in the area I live.

Source: Bernama

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Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • cameljoe on Aug 30, 2005 at 11:46 pm

    BMW picks city for Asian design base

    August 26, 2005

    Singapore – BMW is setting up a design studio in Singapore in a drive to expand in Asia by focusing on "what is hot", according to a top executive.

    The fully owned Designworks USA said the studio would be its first outside Munich and California.

    http://www.motoring.co.za/index.php?fArticleId=28…

    Like or Dislike: Thumb up 0 Thumb down 0
  • As an economy student I fully agree with our Deputy PM. It's the decision that you have/must/shall make. Instead of keeps spending money on oil subsidiary, it's much better to pours it into public investment and national developement for long term benefits. Everyone knows this simple logic.

    I never faced any hardship yet when the oil price hikes up since I still living with my parent and don't have a car of my own yet. Cycling to school or workplace is a popular idea in the western hemisphere. It's not practical, however, to do such thing here in Malaysia. Way too hot.

    Does anyone who would likes to give opinion about having the Subaru R1/Smart fourtwo is a not-so-bad solution?

    *forgive me if my questions sounds fussy or dumb*

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  • cameljoe on Aug 30, 2005 at 11:47 pm

    Kia Korea follows Hyundai with pay strike

    August 29, 2005

    Seoul, Korea – Kia Motors workers demanding higher wages and better working conditions launched a five-day partial strike on Monday, crippling operations at South Korea's second-largest automaker.

    http://www.motoring.co.za/index.php?fArticleId=28…

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  • Dear cameljoe,

    Thank for the interesting information you gave. Singaporean into luxury car design? How the outcomes would looks like ha?

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  • cameljoe on Aug 31, 2005 at 12:20 am

    Much apology Paul if links are not in subject, just like to share some interesting news.

    A regional designed BMW? And ppl think Bangle's design is weird.

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  • cameljoe on Aug 31, 2005 at 12:24 am

    Much apology if the links did not work, just goto http://www.motoring.co.za

    Gov't should cut back on other non-benifical subsidizing pls do not expect poor taxpayer to pay somemore tax to feed some fat snakes.

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  • Mikael_Bonaparte on Aug 31, 2005 at 1:06 am

    I guess Najib's right you know, and we really don't have much choice.

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  • Pentan Sakua... on Aug 31, 2005 at 1:09 am

    I don't mind paying more for petrol as long as the car taxes are down, income tax are down, road tax are down and insurance are down. Let say Proton Gen 2 at RM 25000.00, BMW 320 at RM 150000.00, ACCORD at RM 80000, then baru syok.

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  • News Update on Aug 31, 2005 at 1:10 am

    hei…. Paul…. U took my news

    he he ha ha :)

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  • Much to said about the oil increase, toll also went up, follow by car price soon.

    the only thing that is not up is our salary, with the current oil price, i have to spent extra 150 a month. Government could take the petrol subsidies out, but at first before do that, must have other alternative, like in Singapore MRT and bus, virtually you can go everywhere. But not is the case in here. Without car, is same as no transport. Else should consider reducing the car price, Imagine how much petrol you can buy with RM 10 K to 15K if the reduce the price.

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  • Button on Aug 31, 2005 at 1:16 am

    Oil price hike… Old issue current Headache… i don't mind fuel hike as long as i don't drive Proton Saga or any family of proton car…. Hahahaha… what wrong with the politician.. driving car with a road tax of RM 40grand ++ what they could do is reduce road tax or price of the car at least, so that we enjoy better fuel efficient car like Prius..

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  • on-and-off on Aug 31, 2005 at 1:16 am

    man..sorry but I am going to deviate a bit here. On the anti-smoking Tak-Nak campaign, where the governmant just extended the life of the 10 cig pack, what made me really furious is the statement here by Chua Soi Lek, our Health Minister :

    "“The Cabinet felt that while some farmers have shifted to other crops, not all were successful in doing so.

    Dr Chua: ‘I welcome NGOs to please go and face the 13,000 farmers’

    “It is not a question of planting apples today and oranges tomorrow. Resistance by the farmers has not made it easy.

    “I welcome NGOs, which have a lot of suggestions, to please go and face the 13,000 farmers and tell them what crops to plant other than tobacco.”

    “NGOs can help in the anti-smoking campaigns but they should not target the Health Ministry as if we are their enemy,” he told reporters after witnessing the signing between the National Heart Institute (IJN) and UEM Construction Sdn Bhd-Intria Bina Sdn Bhd for the IJN expansion project.

    He was responding to criticisms by NGOs that the Government was not doing enough in its anti-smoking campaigns.

    According to Dr Chua, an average farmer has 4.2 family members, thus some 65,000 people are dependent on the tobacco industry.

    "

    I would like to tell CSL : Try telling 300,000 parents that you are killing their young childrens, and their friends, and everyone else slowly. After that, please check which option will give u a HEALTHIER nation, and at a CHEAPER costs!!!??

    You are defending 65,000 ppl, and u made it sound so noble. I used to have more respect for you, now it's all down the drain. Think about all the ones u r killing, pls, think not only for this life but when you are gone, your children and yourself in neraka….

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  • on-and-off on Aug 31, 2005 at 1:19 am

    sorry the comment was made to the report in The Star today 30 Aug 05 :

    =========================

    Chua: Tak Nak campaign must be realistic

    BY CELESTE FONG

    =========================

    just in case Paul decided to delete cos I tuduh bukan bukan :-)

    but man, i'm sooo furious…

    malaysia boleh balik lar!!

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  • Streamyx User on Aug 31, 2005 at 2:42 am

    Bush is the crazy bastard. Waste all the money on the forking war, used to be 30 USD per barrel, now USD 80. Have to wait for them to suck all the oil money from afghan and Iraq then.

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  • aksMS on Aug 31, 2005 at 3:27 am

    Guys. Heard dat oil prices will increase 15 cent in a week or two. It's gonna increase somehow. We all know dat. But when a fella from Kerteh said diesel prices will go as high as RM2/litre before year end…..dude, dat is soooo F**Ked!

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  • Lotiman on Aug 31, 2005 at 4:38 am

    It should be RM2 for petrol, not diesel. Correct me if im wrong.

    Anyone remember about the inflation sifar campaign many years ago? and look what happen now. As most of you might know, Malaysian inflation if 4% per year. That means, your Char Koay Teow or Nasi Kandar which price RM3 will increase to RM3.10 to RM3.20 per year. Some area in Penang, Roti canai already RM0.70 while Roti Telur at RM1.00 to RM1.20 and Murtabak at RM1.20 to RM1.50.

    You just can't blame them to increase the price because this is the inflation problem. This year inflation might be the worst because oil price rocket up so much from RM1.42 early this year to now RM1.62 and will launch to RM2 soon.

    Maybe next year Roti canai will sell at RM0.80.

    I hope my salary will increase by 10% this year OR KAPUT!!!

    I have 1 question to ask here:

    Why Malaysia have Petrol yet our petrol price is high?

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  • Lotiman on Aug 31, 2005 at 4:41 am

    The part:

    "You just can’t blame them to increase the price because this is the inflation problem. "

    is referring to Hawkers, not Government.

    Sorry for the typo

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  • When the oil price goes up even those hybrid models does'nt help much, for the poor and the middle class especially. Because hybrid models are priced higher than most standard luxury cars like the Camry or Accord. The Prius is much more expensive than Camry (in US, at least).

    Remember that high fuel price tag is a way larger burden for the middle class users than the well-to-do users (whose mostly drives the Camry/Accord, of course) which can affords great amounts of fuel consumption without much headache.

    Personally I think the hybrid models is built mainly for the environmental purpose(less emission), not really for less consumption.

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  • stupid rafidah on Aug 31, 2005 at 5:57 am

    all this is bush fault f him for the soaring oil prices and the government is NOT rite to remove susidies,national development my ass,doesn't reach the east its always the west coast,what happen to lets look at both side of the coins halo remeber to look at the east too ok u only see both side of the coin in the west howbout the east

    and i hope they do not come out with another book on why they raise the oil prices(what a waste of tax payers money)

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  • hfrshah on Aug 31, 2005 at 6:01 am

    less consumption also means that the exhaustion of fossil fuel will happen at a lower rate, thus i think that was part of the basic plan too

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  • hokkien lang. on Aug 31, 2005 at 9:31 am

    it will go up…… THE OIL WILL GO UP

    FIRSTLY I WANT TO BLAME…. OUR NEIGHBOUR COUNTRY THAILAND PEOPLE

    ESSPESCIALLY SOUTH 1 THEY ALL CAME TO HERE AND BUY OUR PETROL AND DIESEL NO FAIR

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  • People Voice on Aug 31, 2005 at 11:01 am

    I am disappointed with Govt for not able to curb the smuggling of diesel. To me this is the measurement of how efficient (corrupted & Kiasi) our police is. Abdullah have to do as what he pledge to wipe out corruption and increase efficiency of police.

    Can you imagine when you report the smuggling case to police, their response is "this is consumer affair not for them to interfere". What answer is this?? Smuggling is stealing and is not police job????? Abdullah (PM) have to do something.

    Cos of non-action from police, we have to pay high price for diesel.

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  • DOG THE WAN on Aug 31, 2005 at 3:45 pm

    If I am not mistaken, MALAYSIAN product the fineness Oil in the world where Sulfur contain is ZERO% by nature not through any research. (Thanks GOD) Therefore these oil is use by F1, Aircraft and Aerospace, the premium quality.

    Petronas sold it to the world and get the profit. After that Petronas bought back the low grade oil with refined by Japan or other countries, and then sell to Malaysian. (Subsidy means Goverment is controlling the price/level based on the budget plans)

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  • Lotiman on Aug 31, 2005 at 5:20 pm

    Thx DOG THE WAN for the explanation. Now i know why our oil price is so high.

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  • sinleong on Aug 31, 2005 at 5:56 pm

    Oil price goes up and our wages still remains.. Government blame oil producers the problem. Government refused to increased the wages in Malaysia. Isn't it great? Who to blame? in the end, govt. are to blame.

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  • We can't blame the government. Yes, the Petronas sold our fine quality oil to the 'first' world and bought back the low grade oil to feed Malaysian's cars. And I must tell y'all that is the right thing to do.

    No matter how developed Malaysia is, however Malaysia still holds the 'third' world status. How come with our income per capita annually $3 811(the last time I checked) we can afford high quality fuel although it's comes out from our sea bed. Once a barrel of oil produced, it is considered up for the world market and will be sold to any nation which could pays best. Oil is a natural resource, not added-value product. There is OPEC for oil but there no 'OPEC'

    for added-value product.

    *just as a reminder to anyone who probably would disagree with what the Petronas is doing with our black gold*

    Am I go off topic? Forgive me if do

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  • DOG THE WAN on Aug 31, 2005 at 7:30 pm

    Yeah bob, You are correct!

    I think Petronas is doing the right things too. Because the Premium oil can get higher price and it is not suitable for Automotive, I means waste/burn more money for the same results. (ZERO% sulfur will not improving car performance)

    Next Malaysian government get the Tax from Petronas, and then to subsidy us. There is nothing wrong on it.

    Then why price Go UP Higer and HIGHER??

    Actually, Refinement cost of Low grade oil is very high due to only few countries in the world doing this business, mainly JAPAN, USA, European and all the rich countries. Also, Petronas still cannot control the price UP or DOWN it depend on the world demand too. CHINA is demading oil more and more every year!!! WHAT can we do??

    Just an example:

    If Someone wanna to buy your PISANG GORENG 100,000 pieces a day (VERY HIGH DEMAND) and you can only produce 100 piece a day, How much price up could be 200% to 300%, may end up to sell RM5 per piece rights?

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  • hfrshah on Aug 31, 2005 at 7:44 pm

    sulphur content does affect cars' performance. on some cars at least.. the S600 needs 98% octane fuel to run to its full potential. with high sulphur content, the maximum output goes down by a few horses and apparently it hastens wear and tear in some engines if not all.

    some car munufacturers are strugling to modify their diesel engines to run on the low quality diesel available here.

    Singaporeans who refuel here in Malaysia can feel the difference

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  • DOG THE WAN on Aug 31, 2005 at 8:12 pm

    Totally agree hfshah that it only affect SOME cars performance!! (thanks hfrshah for further explanation)

    But how many of you using S600 or SPORTS cars?? I only cover the majority (80% to 90%) not 100% sorry lah!

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  • gegaoff on Aug 31, 2005 at 9:41 pm

    wat lao eh.. not again? :-(

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  • Shireen k on Sep 01, 2005 at 4:06 am

    OMFG!!! … this is so not relevant.. this is gonna kill everything… it is logical for the government to take such actions.. BUT WHAT TOOK THEM SO LONG????

    If they are gonna do that .. they will 1st have to look at the conditions of the public transport.. and so forth…. sub urban areas in subang has only got a commuter which sucks.. buses comes in only say 20 minutes to 30 minutes in rural areas…bus drivers sucks.. they drive like F1 drivers.. or if u happen to be the last passenger they will tend to rape or rob.. u board the bus and get off smelling like one.. no maintenance… yada yada yadaa..

    We cant compare with any other countries because even taxis here sucks as well.. The mercedes for the KLIA limo services is in bad condition.. wouldnt wanna sit in one.. our public transport here is a total waste of time because it's time consuming.. takes about 1 hour just to get to KL from subang… oh i can go on….

    they should be providing efficient services as such before implementing or better yet propose the hike of petrol. crap…………………………. sorry PT.. just wanna rant…

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